Clare O’Neil announces review of Home Affairs offshore processing contracts

The independent inquiry was announced after Peter Dutton called on Anthony Albanese to join him in referring matters to the NACC.

Opposition Leader Peter Dutton at Parliament House in Canberra on Monday. Picture: NCA NewsWire / Martin Ollman

The Department of Home Affairs’ handling of offshore processing and awarding of suspect contracts will be scrutinised by an independent review, as Peter Dutton calls for allegations to be referred to the anti-corruption watchdog.

Announced by Home Affairs Minister Clare O’Neil, the review – headed by former senior public servant Dennis Richardson – will prioritise recent concerns about contracting arrangements but have the scope to examine contracts awarded since offshore processing began under Labor in 2012.

The Australian understands the Albanese government is considering a further breaking up of the Home Affairs department and potentially rebadging it.

Amid a pressure campaign against departmental secretary Mike Pezzullo, there are rising expectations that either his contract will not be renewed or that the veteran public servant may retire.

Anthony Albanese called on the Opposition Leader and other relevant former ministers to co-operate with the inquiry.

“We’re 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,” the Prime Minister said.

“The review will consider governance practices and these ­allegations in the wider context of serious issues that have emerged over this time. In particular, it will consider any integrity concerns about contracting arrangements regarding regional processing, whether public or otherwise, as well as the department’s governance ­arrangements, not just to look at what’s happened in the past but to make sure that appropriate mechanisms are put in place in the future.”

Mr Dutton said on Monday that he was happy to join Mr Albanese in referring potentially dodgy Home Affairs procurement contracts to the National Anti-Corruption Commission, declaring he had no involvement as the responsible minister in contract negotiations.

Nine media has revealed the Australian Federal Police gave then home affairs minister Mr Dutton a verbal briefing about Australian businessman Mozammil Bhojani being investigated for bribery a month before the Home Affairs department gave his company a multimillion-dollar offshore detention contract.

“The department is advised of these matters or the AFP, ASIO, ASIS, will share intelligence with departments, but as minister 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,” Mr Dutton said.

“What I do know is that the procurement arrangements that operated when I was minister are the same as operated when Brendan O’Connor was minister, when Tony Burke was minister. And if that’s the case, then refer the whole period (back to 2012) and I have nothing to hide in relation to the matter.

“The government’s playing games here.”

Attempting to get on the front foot before the government called an independent inquiry into the management of the department, Mr Dutton accused Ms O’Neil of being “at loggerheads” with Mr Pezzullo and said he was in the crossfire.

Mr Richardson, a former secretary of the Department of Foreign Affairs and Trade and the Department of Defence, as well as a former director-general of the Australian Security Intelligence Organisation, will be able to refer matters to appropriate authorities for further investigation.

The Australian understands the pressure against Mr Pezzullo, who boasts vast institutional knowledge across the machinery of government and wielded enormous power during the pandemic, is intended to inject a new culture and approach at Home Affairs.