Coronavirus Australia: Police question Victorian hotel quarantine security firm

Security company at centre of the Melbourne quarantine disaster slapped with a second show cause notice.

Victorian opposition police spokesman David Southwick demanded the government ­explain why Unified Security had been granted a licence despite “being pursued by NSW authorities in relation to serious financial crimes”. Picture: NCA NewsWire / David Geraghty

The security company at the centre of the Melbourne quarantine disaster has been slapped with a second show cause notice by police, which may result in the company being removed from NSW’s hotel quarantine scheme.

Unified Security, which was contracted for the lion’s share of work in the Victorian hotel quarantine scheme, had its licence placed under review by NSW police in September.

The NSW Police Security Licensing Enforcement Directorate (SLED) launched the investigation into Unified Security after The Australian published evidence that senior government bureaucrats held concerns around the wind-up of a business that previously traded as Unified Security Group.

Speaking at a NSW parliament budget estimates committee SLED director Cameron Smith revealed the industry regulator had hit Unified Security with another show cause ­notice, with its response due by close of business on Friday.

Mr Smith said SLED was investigating whether Unified ­Security managing director David Millward “was a principal of that organisation”.

The NSW parliamentary committee meeting heard evidence from minutes of a creditors meeting that suggested links ­between Mr Millward and a failed business that previously traded as Unified Security Group before going into liquidation owing $4.5m to the office of State Revenue.

“Underlying this is, I suppose, 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,” Labor committee member ­Anthony D’Adam said.

The Australian is not suggesting any illegal phoenix activity took place.

However, NSW Police Commissioner Mick Fuller said if the investigation were to make ­adverse findings against Unified Security, the company would “be straight off the contract” for the NSW quarantine hotels.

A SLED spokesperson said the show cause notice sent to Unified Security on February 19 required it to make “submissions about a number of matters that SLED considers relevant to its consideration of whether to ­revoke the Master security ­licence held by the company”.

A Unified Security spokes­person said the business would assist “NSW Police with the ­information they require to ensure compliance”.

Unified Security had received at least $18m by September for providing services to the NSW hotel quarantine scheme.

While the review into Unified Security’s licence to operate in NSW has deepened, the business was given a pass by Victoria Police, seemingly in contravention to internal advice given by police.

Internal briefing notes to Chief Commissioner Shane Patton instructed him that no security company should be issued a new licence to operate if linked to illegal phoenixing.

Victorian opposition police spokesman David Southwick demanded the government ­explain why Unified Security had been granted a licence despite “being pursued by NSW authorities in relation to serious financial crimes”.