C5 is part of a joint venture led by PNG security firm Tactical Solutions International (TSI). TSI, in turn, is owned by Chris Carroll, who has close ties through another security firm to rising PNG MP Bryan Kramer - a frequent critic of PNG prime minister Peter O'Neill. The security contract shapes as a potentially serious conflict of interest problem for Australia and PNG, which are still reeling from revelations that a limited-tender, $423 million security contract was awarded by Home Affairs to a virtually unknown company, Paladin, for work at immigration camps on Manus Island. Multiple sources have said C5 was providing advice to PNG Immigration on the Bomana tender evaluation and other risk management issues, while simultaneously being part of a joint venture bidding for the security contract. “It’s a fairly contentious tender and definitely something worth looking into,” said a source intimately involved with the process.

TSI also held contracts with PNG Immigration & Citizenship Authority before the security tender was opened in June last year. TSI and C5 have combined in a PNG-based joint venture security business since 2015 called Controlled Outcomes. The Age and Sydney Morning Herald are not suggesting C5 or its owner, ex-federal police agent Ty Clark, acted inappropriately or influenced the outcome of the tender. Nor is it suggesting any wrong-doing by TSI owner Chris Carroll. However, the dual role of C5 as PNG Immigration adviser and security tender winner do raise conflict of interest questions. Sleeping quarters at the Manus Island facility. Credit:AAP The Age and The Sydney Morning Herald can reveal that Paladin was an unsuccessful bidder for the Bomana security contract.

The Paladin affair has caused such nervousness in both Australia and PNG that neither government is prepared to confirm if C5 and TSI are the winners of the latest security tender. Each government says it is up to the other, with Home Affairs pointing out that the process was solely run by PNG’s Immigration & Citizenship Authority. But PNG’s chief migration officer, Solomon Kantha, said Bomana was Australian-funded and, as such, it was up to Home Affairs to discuss security contracts. Home Affairs is keen to distance itself from the Bomana security tender process, but Australian government officials were present at tender briefings hosted last year by PNG’s Immigration & Citizenship Authority. Consulting giant KPMG was also working with PNG Immigration on procurement under a Home Affairs contract, but was not directly involved in the security tender. KPMG was the department's "commercial adviser" on the controversial Paladin contract. The Manus Island facility Credit:Andrew Meares

Little is known about C5 or its owner, Mr Clark, except that he was the recipient of a bravery medal during his time in the Australian Federal Police. The company last made the news in 2014 when it was revealed it had been overseeing a covert spying operation to infiltrate anti-coal mining activists in NSW on behalf of Idemitsu Resources. Contracts published on the AusTender website show C5 has won about $15 million in limited-tender Home Affairs contracts since 2015 to provide security escort training in PNG. Limited tender contracts are ones where a department can ask as few as a single company to bid. C5 was also contracted by Home Affairs in 2017 under a contract for “research programs” to provide “independent authoritative expertise to assist the Australian Border Force to further develop and deliver an advanced specialist field operations program”. Mr Clark also provided security advice to the PNG government as it hosted last year’s APEC summit.

PNG’s chief migration officer, Mr Kantha, referred all questions about the Bomana security contract to Home Affairs. “The PNG government has always maintained that management of contracts and award of contracts for services is the responsibility of the Australian government,” he said.

Mr Kantha was adamant he had never received financial or other benefits from TSI, adding that he was aware of “false accusations” being spread by those who may have missed out on contracts. Loading His car has a TSI sticker on it, but he says this is for vehicle tracking purposes. He says the company is contracted by his department to provide anti carjacking services. Home Affairs said in a statement Australia had supported the construction of Bomana but the security tender process was “wholly managed” by PNG. “Capacity building support to PNG on procurement practices and methods was provided by the Australian government. Any information on the tender process or preferred tenderer is a matter for the PNG government,” the statement said.

C5's Mr Clark said neither he nor TSI's Mr Carroll had provided any benefits to any PNG Immigration official. He said their companies could not comment on PNG government contract matters but were keen to grow job opportunities for PNG citizens. It is not known when PNG authorities will begin transferring non-refugees from Manus to Bomana. But Mr Kantha and Immigration Minister Petrus Thomas have repeatedly warned over the past year that those in PNG without a lawful reason will be detained ahead of deportation.