Home Affairs launches inquiry into offshore detention contracts

A review has been launched after allegations emerged that millions of dollars were sent to Nauru and Papua New Guinean politicians.

An inquiry has been launched into the Home Affairs department after it was alleged that contracts were used to funnel money to politicians overseas.

Home Affairs Minister Clare O’Neil announced the review on Monday after the allegations of suspicious contracts and payments to local politicians in Nauru and Papua New Guinea were aired in recent weeks.

These claims include giving a multimillion-dollar offshore detention contract to an Australian businessman Mozammil Gulamabass Bhojani while he was under investigation for bribery involving Nauru officials.

Ms O’Neil said the allegations “merit detailed and thorough examination”.

Home Affairs Minister Clare O'Neil has launched a probe into the department which will be conducted by Dennis Richardson. Picture: NCA NewsWire / Martin Ollman

“In recent weeks, a number of serious issues relating to the governance of contracting related to regional processing have been placed on the public record,” a statement from Ms O’Neil’s office says.

“The review will consider governance practices and these allegations in the wider context of serious issues that have emerged over many years. It will not canvass the policy of regional processing itself.”

The announcement comes after Opposition Leader Minister Peter Dutton said he would be “happy” for questions to be referred to the NACC.

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

Mr Dutton himself has faced scrutiny over the claims, especially the contracts with Mr Bhojani, which allegedly occurred during his time as Home Affairs Minister.

The Australian Federal Police said they briefed Mr Dutton on Mr Bhojani in 2018 just one month before a new contract was signed and two months before he was charged with bribery.

Former Home Affairs Minister Peter Dutton said he believes he is “caught in the crossfire” of a clash between Ms O’Neil and the department’s secretary. Picture: NCA NewsWire / Martin Ollman

Mr Dutton, who was overseas when the news about the briefing broke, said he has no record of it and didn’t remember it occurring.

“The fact is, it is inconsequential even if a briefing was provided to contracts administered by Home Affairs,” Mr Dutton said.

“[As a minister] you’re not involved in the procurement services. It’s entirely a matter for department … it’s complete nonsense.”

Mr Dutton said there were other reasons for the probe, saying he had been “caught in the crossfire” between Ms O’Neil and Home Affairs secretary Mike Pezzullo.

“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,” he said.

“I feel like I’m in the crossfire of these attacks by Minister O’Neil on Mr Pezzullo.”

Former Secretary of the Department of Foreign Affairs and Trade, Department of Defence and Director-General of Security Dennis Richardson has been appointed to conduct the review.