10 January 2023

Mr Grant Hehir

Auditor-General

Australian National Audit Office

GPO Box 707

Canberra ACT 2601

Dear Mr Hehir,

I write to request that you conduct an investigation into decisions by the Department of Home Affairs to engage Management & Training Corporation Pty. Ltd (MTC Australia) to run garrison and welfare services in Nauru for refugees and people who sought asylum in Australia.

MTC’s parent company in the US is under investigation by both the Texas State Auditor and the Texas Department of Criminal Justice for allegedly engaging in fraudulent conduct and pandemic profiteering.

The company was previously accused of “gross negligence” and “egregious” security failures in the United States that allegedly allowed for murders and gang rapes.

Some or all of these allegations were known to, or should have been known to, the Department of Home Affairs at the time it decided to enter into or extend arrangements with MTC Australia.

Could you please investigate:

• What inquiries or investigations were made about MTC and its US parent company during any due diligence process;
• Whether MTC Australia were an appropriate company to engage given the track record of its parent company in the US and the particular circumstances of people on Nauru to whom Australia owes a duty of care;
• Whether there was due consideration given to alternative service providers;
• Whether Commonwealth procurement guidelines were followed;
• Whether the contract(s) provided value for money; and
• Any other issues you deem appropriate

I note the significant issues your office has identified in multiple previous reports into the Department of Home Affairs’ management of contracts and procurement processes for offshore detention services.

Thank you for your consideration of this matter.

Yours sincerely

Nick McKim

Australian Greens Senator for Tasmania