Manus security firm doing it ‘the PNG way’

A security company awarded a contract to run Manus Island facilities has been praised for doing business “the PNG way”.

PNG Government Speaker and MP Job Pomat: “If it’s happening in Australia then let it be the Australian way. But on our soil, on our land, it must be done our way.” Picture: Brian Cassey

A security company awarded a $423 million Department of Home Affairs contract to run Manus Island refugee facilities without a competitive tender process has been praised by the local MP and clan leader for doing business “the Papua New Guinea way”.

As Home Affairs officials yesterday conceded the awarding of the Manus security contract to Paladin Security Services was rushed, Manus MP Job Pomat, who is also the Speaker of the PNG parliament, said unlike previous Australian-contracted ­security companies, Paladin had signed a contract to benefit local landowners.

The deal was signed with Peren Investment, which is 60 per cent-owned by Mr Pomat’s brothers, Kepo, Allan and Polosong Pomat.

Mr Pomat — a vital ally of PNG Prime Minister Peter O’Neill — said while he was the Manus clan leader “by birthright”, he was not involved in the negotiation of the deal.

“I don’t know the deals that were done there, or how Paladin got the deal with the Australian government. I’m not privy to it,” he said.

“But when they came here, and got involved with the local landowner company — is that a bad thing? No.

“That’s the Papua New Guinea way. It’s happening in Papua New Guinea so let it be the Papua New Guinea way.

“If it’s happening in Australia then let it be the Australian way. But on our soil, on our land, it must be done our way.”

The member for Manus Open, who is serving as PNG’s Acting Governor-General, is the deputy leader of Mr O’Neill’s People’s National Congress party, and will be a central figure in determining whether Mr O’Neill faces a potential vote of no confidence later this year.

Senior Department of Home Affairs officials told Senate estimates yesterday the awarding of the Manus security contract to Paladin had to be done without a competitive tender because PNG had advised at a late stage in the process that it could no longer deliver services at the Manus facility, as previously agreed.

Labor MPs on the Senate’s legal and constitutional affairs committee aired claims the thinly capitalised company had links to an executive with a history of failed contracts, and the business address of its Australian arm was a beach shack on Kangaroo Island.

A special exemption was ­obtained under commonwealth procurement rules to deal ­directly with Paladin, rather than running an open tender, to ­ensure continued services for refugees and asylum-seekers.

“We only went to Paladin,” a Home Affairs official said. “Paladin was operating in the environment … they understood the environment. To date we’re quite happy with the services they are undertaking.”

The company provided the ­security services after Broadspectrum, formerly Transfield, pulled out.

Home Affairs secretary ­Michael Pezzullo said he would have preferred an open tender, a “global search” for the right company, and a “long lead time”.

But Home Affairs officials said PNG’s government had advised in July 2017 it would no longer deliver services on Manus Island because of a clash with its elections. The department needed contractors to start by October.