Unified Security faces axe from NSW hotel quarantine program

Security at NSW’s COVID-19 quarantine hotels is set to undergo a massive and unplanned shake-up after NSW Police moved to punt one of the largest providers of guards.

The security company that provides up to a third of guards at NSW quarantine hotels is set to be axed over “undeclared changes in ownership”.

The decision by the Security Licensing and Enforcement Directorate (SLED) of NSW Police to revoke Unified Security Group’s master licence will take effect on April 2, giving authorities less than a fortnight to plug the gap.

Since April last year, Unified has received more than $30 million under a quarantine contract with the NSW government, providing 200 to 300 guards a day at more than 15 hotels.

A NSW Police spokeswoman on Monday said it and “partner agencies have enacted contingency planning and are confident the revocation will not impact on the delivery of operations to the hotel quarantine program.”

A Unified Security guard outside quarantine hotel Adina Town Hall in 2020. Picture: Jonathan Ng

However she would not explain how the hole would be plugged, nor would NSW Premier Gladys Berejiklian’s office.

The revocation follows what Police previously described as “extensive inquiries into undeclared changes of ownership”.

A Unified spokesman said it would appeal the revocation and would continue to provide security services while that took place.

“We are extremely disappointed and perplexed by this decision from SLED,” Unified’s spokesman said.

“Unified Security has worked tirelessly and in close collaboration with the NSW Police for the past 12 months to provide the best possible hotel quarantine services.

“The security services we have provided at the Sydney hotels have been responsive, professional and effective, and have helped keep the people of NSW safe,” the spokesman said.

“This has been ignored by SLED.”

At a NSW Parliament budget estimates hearing earlier this month, Labor’s Anthony D’Adam raised concerns about a company named USS Risk Pty Ltd, which he said was formerly Unified Security Group (Australia) Pty Ltd.

Labor's Anthony D'Adam. Picture: The Daily Telegraph

Documents filed with the corporate regulator confirm Mr D’Adam’s claim at the hearing that USS Risk “went into liquidation owing $4.5m to the Office of State Revenue.”

Mr D’Adam told the hearing there was a “suggestion that this Unified Security Group might actually be a phoenix organisation and that the principals are alleged to have engaged in phoenixing activity.”

In July last year The Daily Telegraph revealed Unified Security had twice emerged from administration.

The first time, it sold all its assets — including four Glock pistols — to itself for $20,000.

The second time it came back from the brink, unsecured creditors owed $1.4m got just 3.7 cents in the dollar owed.

The Telegraph does not suggest that Unified or its directors engaged in phoenix activity.

Documents made public under a NSW Parliament “order for papers” reveal Unified was paid $18m for security at quarantine hotels between the start of April and end of September last year.