Minister announces inquiry into offshore detention contracts scandal

Prime Minister Anthony Albanese has called on Peter Dutton to co-operate with a government probe into the offshore detention contracts scandal engulfing the opposition leader’s former home affairs ministry.

The investigation will extend as far back as Labor’s previous time in office.

Home Affairs Minister Clare O’Neil says the inquiry will look into both current and historic Home Affairs’ governance, oversight processes and systems for managing Australia’s offshore detention program.Credit: Alex Ellinghausen

Home Affairs Minister Clare O’Neil announced the review into procurement contracts surrounding Australia’s offshore processing regime after Dutton said he would be happy to refer allegations about the contracts to the new National Anti-Corruption Commission.

Former Department of Foreign Affairs and Trade secretary Dennis Richardson will undertake the probe after the Home Truths investigation by this masthead and 60 Minutes revealed millions of dollars of suspect payments went to local politicians in Nauru and Papua New Guinea.

“It is absolutely clear that these warrant further investigation. These are serious allegations and there is serious money involved,” O’Neil told parliament on Monday.

While the review will not evaluate the policy of offshore detention, it will examine the oversight of contracts, integrity concerns over the use of subcontractors in Pacific Island nations and the current and historical governance of Home Affairs in relation to immigration detention.

Among the revelations was that the Home Affairs Department handed a multimillion-dollar offshore detention contract to an Australian businessman just one month after federal police told Dutton, who was then home affairs minister, that the man was under investigation for bribery.

Asked on the ABC’s7.30 program on Monday whether he denied being briefed about Bhojani, Dutton said, “not just am I saying that, the Federal Police don’t have any recollection or any detail about what was briefed”.

Albanese told parliament in question time that the government was “acting quickly and decisively”.

“And it is appropriate that an independent eminent reviewer have a look at what has occurred, that departmental officials be obligated to co-operate if instructed to do so, and the ministers and people at the time, including the leader of the opposition, co-operate with the inquiry,” he said.

Speaking to reporters earlier on Monday, Dutton said: “I had no involvement whatsoever in relation to the contract negotiations, the execution of the agreements. And that’s true for all of the predecessors back to 2012 ... And I have nothing to hide in relation to the matter.

“I’m very happy to co-sign a letter today with the prime minister referring these matters to the integrity commission.”

Asked whether he would make a referral himself, Dutton said he would “be happy to refer it”.

Dutton said he believed he had been “caught in the crossfire” between O’Neil and long-time department secretary Mike Pezzullo, and accused Labor of playing political games.

Opposition Leader Peter Dutton says any referral should look back to when Labor was last in office.Credit: AAP

“The minister obviously is at loggerheads with the secretary,” he said.

“If she wants to sack the secretary of the Department of Home Affairs, she should speak to the prime minister about that, but having this tit-for-tat I feel like I’m in the crossfire of these attacks by Minister O’Neil on Mr Pezzullo.”

Dutton said any referral should look back to when Labor was last in office, saying the same contractors were making procurement arrangements with the government back in 2012, when Australia resumed its offshore detention policy under then prime minister Julia Gillard.

Pezzullo did not answer a series of detailed questions about his leadership put to him last week, but replied with a statement saying he had “always acted with integrity”.

“For the duration of my tenure, I have been the subject of integrity oversight ... I am proud of the record of achievements of the Department of Home Affairs and commend the committed officers who continue to deliver results,” he said.

A Home Affairs spokesperson said neither Pezzullo nor the department had anything more to add to his previous response when contacted with further questions on Monday.

Dutton specifically addressed a story from this masthead, based on documents tabled in federal parliament, that the Australian Federal Police’s acting commissioner told him in July 2018 that Sydney-based Mozammil Bhojani was under investigation over suspected bribes to Nauruan politicians.

Despite the verbal police warning, the Department of Home Affairs entered into a fresh contract with Bhojani’s company a month later.

“There’s been some commentary around a briefing that I received,” Dutton told reporters at Parliament House.

“I’ve checked my records. I don’t have any record in my office of having received a briefing on that matter.

“I note the response from the Australian Federal Police to the question on notice; they don’t have any detail of information that was alleged to have been provided to me.”

Dutton also told ABC’s 7.30 he had asked to meet with AFP commissioner Reece Kershaw to get further details.

“That has to go through the minister’s office, and she hasn’t cleared that meeting as yet, but I’m happy to have that discussion with the AFP to get more detail,” he said, adding if the meeting took place he had no problem with any notes that existed from being released.

Dutton said it would have been inconsequential even if a briefing was provided, as he did not involve himself in procurement matters, which he said had no bearing on the conduct of the minister.

He said he had no awareness of any improper payments made under the offshore detention scheme during his time as minister.

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