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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
Figure 2.1. MTC Australia subcontracts 32
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