Media Release: Hundreds of millions of taxpayer dollars wasted amid safety and human rights concerns for people transferred to Nauru

The Albanese Government has quietly increased payments to controversial US prison operator Management and Training Corporation (MTC), bringing the total value of its offshore detention contract to an eye-watering $790 million. This is for the detention of just 105 people on Nauru – a staggering $7.5 million per person – despite mounting reports of violence and abuse against people seeking asylum.

The Albanese government initially signed a contract with MTC in 2022 for $47 million. It has since progressively increased the amount to now 16 times more than originally planned. When making these increases, the Department of Home Affairs has not put the contract out for tender or subjected the changes to any public scrutiny and transparency –  despite a long history of concerns about the incremental increases made to contracts and the risk of corruption. 

Meanwhile, the safety risks in Nauru are increasing. People seeking asylum are increasingly telling their Asylum Seeker Resource Centre caseworkers that they are concerned about their safety. At least 16 people have recently reported incidents of violence, with 6 of these occurring in the past month and the actual number suspected to be much higher. 

MTC has a history of fraud, money laundering, gross negligence and abuse in the US. Despite this, our government has recklessly given hundreds of millions of taxpayer dollars to this company. This has proven to be a disaster and a flagrant waste of public money, with the situation on Nauru worsening due to Australia’s policy of offshore processing. 

The government’s lack of transparency around spending hundreds of millions of taxpayer dollars in dodgy deals is in line with their recent Nauru deal. The government has committed at least $2.5 billion to the Nauruan government to accept people Australia deports without any public discussion or details on what this money is for. This is especially concerning, considering past agreements with Nauru have been fraught with corruption.

The Australian Government’s decision to contract a company with a documented record of human rights violations reflects a troubling cycle: Australia’s model of offshore and privatised detention has influenced US practice, and in turn, the Australian Government is now replicating those same abusive systems by employing US prison operators here.

Offshore detention is broken beyond repair. Pouring hundreds of millions more into failed contracts will not make people safer, nor will it fix a system built on secrecy, cruelty and waste. The Albanese government must end offshore processing immediately and bring all those it has transferred offshore to Australia to have their refugee claims assessed. 

Anonymous refugee detained on Nauru, said:

“It’d be great if the Australian government could understand. We are very scared. Local Nauruans are attacking us for no reason. We cannot go out at night. I’ve been assaulted 3 times. I was on the job and Naruans assaulted me. I suffered blows to the head and back.

Police didn’t do anything to assist. These people (perpetrators) are not scared of the police. They seem to have protection. They asked for money, and just kept hitting me, they said ‘you can even call the police but we’ll keep hitting you’. The problem is that if you defend yourself, you’ll end up in jail.

$230 / fortnight is not enough to survive. I can’t work anymore because I got assaulted at work. If I could work, I’d be able to afford more food. I’m eating less.

Coming from another country to Nauru without safety, work and food is punishing. 

I spoke with authorities, all they said was they can return me to my country.  I left my country for protection. I can’t go back to my country or I could be killed. But it’s similarly unsafe here in Nauru. They don’t care about refugees at all.  It’s a hopeless situation.”

Heidi Raouf, ASRC Detention Casework and Policy Lead, said: 

“People seeking asylum trapped on Nauru are experiencing worsening conditions. They have increasingly reported incidents of abuse, including being severely beaten. These recent attacks compound the existing health crisis on Nauru, with 65% reporting that they are experiencing physical health conditions. Australia has a clear responsibility for the refugees our government has banished there. The government must stop funding this human rights disaster and urgently medically evacuate people held offshore”. 

Jana Favero, ASRC Deputy CEO, said:

“The Albanese Government is recklessly throwing away hundreds of millions of taxpayer dollars with zero transparency or accountability. It is funnelling public money to governments with records of corruption and companies notorious for fraud and human rights abuses. This is not only a disgraceful waste of public funds, it is a deliberate investment in cruelty – punishing people who have fled their homes in search of safety. Australians should be outraged.”

ENDS 

For further information or to request an interview contact Natasha Blucher (ASRC) on +61 412 034 821 or media@asrc.org.au