PNG wants security company Paladin's Manus contract terminated

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PNG wants security company Paladin's Manus contract terminated

Refugees and asylum seekers are sitting on one side of the gate while guards are standing on the other side.

The Papua New Guinea Government says it wants security company Paladin's contract to work on Manus to be terminated at the end of the month, despite the Home Affairs Minister saying it would likely be extended.

Key points:

  • PNG's Immigration and Border Security Minister said the country's chief migration officer had written to the Home Affairs Department about it ending the contract
  • Peter Dutton didn't specify when asked if arrangements were being put in place for PNG to take over services on Manus
  • The Home Affairs Department previously defended the awarding of the contract to Paladin

The $423 million contract with the security company is currently being investigated by the Auditor-General and ends in two weeks.

PNG Immigration and Border Security Minister Petrus Thomas said the country's chief migration officer had written to the Home Affairs Department about it through the High Commission in Port Moresby.

"[The] PNG Government's position is to … terminate the Paladin contract by the end of this month," he said.

"[The PNG Government] wants a transparent tender process."

Two guards lock the gates at Manus Island detention centre.

The Minister said his Government would "strongly recommend" local involvement, saying PNG companies "now have the capacity and expertise to do the job and should be given the opportunity to participate".

Just a day earlier, Home Affairs Minister Peter Dutton said the "likely arrangement is that there will be a continuation" of the contract.

He said the matter was being handled by his department.

"They have obviously got people on their panel, they've obviously got contracting arrangements, and they will look at the history of the people who are applying, the suitability for them to provide services, and they will make judgements based on that," he said.

"Services need to be provided."

Peter Dutton says he wants people off Manus and Nauru but has yet to outline a plan.

He did not specify when asked if arrangements were being put in place for PNG to take over the services.

"The department will work with the PNG authorities. We've got to make sure we're getting value for money," he said.

There has been ongoing scrutiny of how little-known security firm Paladin obtained the contract to provide security and other services for the refugees and non-refugees in Papua New Guinea.

The Home Affairs Department has previously defended the awarding of the contract, which was done under a so-called "special measure" provision because there was not enough time for an open tender.

Home Affairs secretary Michael Pezzullo told a Senate hearing in February that the PNG Government was planning to take over responsibility for the services in October 2017, but in July that year decided it could not proceed because it was in caretaker mode ahead of its election.

Mike Pezzullo holds his hands in the air as he sits at a desk inside a Parliament House committee room

"My very strong preference would have been to have a long lead time, an open tender, a global search assisted by specialised consultants and advisers," Mr Pezzullo said.

"That plan held fast until mid-2017 when the sovereign state of PNG advised us, 'We don't intend to proceed'.

"We were dealing with an urgent situation but were never desperate in doing so."

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