"US operator accused of ‘gross negligence’ wins $420m contract to manage Australia’s asylum processing on Nauru", 27 January 2023

The controversial US private prisons operator running Australia’s offshore processing regime on Nauru has been handed a $420m Australian government contract to run ‘garrison and welfare’ on the island for three years, managing fewer than 70 people.

The Australian arm of Management and Training Corporation (MTC) was awarded the contract despite a string of scandals in the US.

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The contract was publicly posted to the government’s Austender website on Friday, detailing a three-year deal for $421,830,424.60, which will run until 30 September 2025.

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The auditor-general is considering launching a formal inquiry into MTC’s contract after Greens senator Nick McKim requested an investigation, arguing “some or all of the allegations [against MTC] 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”.

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MTC declined to comment, directing questions to the department of home affairs. A spokesperson for the department said the Australian government had finalised its procurement process in signing the three-year contract with MTC.

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MTC has previously issued a statement strenuously denying the latest allegation against it in the US, which is being investigated by the Texas state auditor.

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“We look forward to cooperation with the [Texas state department of corrections] and Texas State Auditor to disprove the allegations and affirm the consistent quality of MTC programming across our facilities, including during the pandemic,” a spokesperson said.

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