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Title page 1

Contents 4

Members 3

Abbreviations 6

List of recommendations 8

Chapter 1. Introduction 9

Referral 9

Background 9

2016-2017 ANAO performance audits 12

Department of Home Affairs 2019 internal audit 12

2020 ANAO performance audit 13

Media reports in 2023 and 2025 14

2023 Review of integrity and governance arrangements for the management of regional processing contracts by Home Affairs... 15

Further integrity reforms across the Commonwealth 17

Procurement due diligence measures and enhancements since the Richardson Review 18

Structure of the report 18

Conduct of the inquiry 18

Note on references 19

Chapter 2. Australia's offshore processing and resettlement arrangements 20

Australia's offshore processing and resettlement arrangements 20

2021 Memorandum of Understanding between Australia and Nauru - enduring regional processing capability 21

2025 Interim agreement and Memorandum of Understanding between Australia and Nauru 22

Regional processing arrangements with Papua New Guinea (2012-2021) 25

Resettlement arrangements 27

Current Australian Government payments to support regional processing and resettlement arrangements since 2022 27

Facilities, garrison, transferee arrivals and reception services contract 29

Health Services Contract 30

Protection claims assistance services 31

Subcontracting arrangements 31

Arrangements prior to 2022 33

Chapter 3. Integrity of service arrangements and their value for money 35

Lack of transparency and oversight of offshore processing and resettlement arrangements 36

Confidential arrangements make it difficult to assess the true cost of offshore processing and resettlement and quality of services provided 36

Concerns as to transparency and oversight under contractual arrangements with service providers 39

Indirect costs associated with offshore processing and resettlement 41

Value for money considerations 42

Integrity considerations and procurement due diligence 43

Allegations in relation to misuse of taxpayer funds 43

Concerns in relation to the procurement process 45

Strengthened governance and integrity measures following the Richardson Review 48

Procurement due diligence measures and implementation of key measures after the Richardson Review 49

Procurement and due diligence measures under arrangements with current service providers 51

Chapter 4. Committee view 54

Dissenting report from Australian Greens 58

Appendix 1. Submissions and additional information 73

Appendix 2. Public hearings 79

Tables 28

Table 2.1. Contractual arrangements in relation to regional processing since 2022 28

Figures 32

Figure 2.1. MTC Australia subcontracts 32