Showing posts with label government funding. Show all posts
Showing posts with label government funding. Show all posts

Tuesday 25 June 2019

Will the Clarence Valley see an upgrade of Grafton Base Hospital within the next three years or will it take a decade to commence?


Grafton Base Hospital is a 50-99 bed public health facility which offers health services to an est. 51,647 resident population in the Clarence Valley on the NSW North Coast and an additional annual tourist population which can reach or exceed 1 million visitors.

In the first quarter of 2019 ambulance arrivals at Grafton Hospital were up 11.5 per cent, emergency department presentations rose by 3 per cent, emergency presentations climbed by 4.2 per cent, hospital admissions increased by 14.9 per cent with acute admissions totalling 3,127 patients and the elective surgery waiting times continued to grow.

In that same quarter during the NSW state election campaign the Nationals MP for Clarence on behalf of the Berejiklian Coalition Government promised voters in the Clarence Electorate a much needed $263.8-million overhaul of Grafton Hospital.

At the time doubts were raised about the genuineness of this promise as it contained little detail.

Those doubts are now resurfacing……

The Daily Examiner, 21 June 2019, p.3:

A major hospital upgrade looks to be a while off as the Clarence Valley joins the long queue of regions promised big projects at the New South Wales election.

The $263million commitment to the Grafton Base Hospital redevelopment was made in the final weeks of the campaign in March and is just one of many major infrastructure promises outlined in the 2019-20 Budget Papers.

However, there there was no specific line item in the 2019-20 Budget and Nationals MP Chris Gulaptis was quick to point out it would take time.

“It’s not a line item as such as we are still in the very early planning stages but there is a commitment for works to commence during this term of government,” he said.
“In the meantime, consultation needs to occur between the LHD, clinicians and the community to ensure the redeveloped hospital is able to provide for the community into the future.”

Mr Gulaptis said he had received assurances from Premier Gladys Berejiklian, Treasurer Dominic Perrotet and Deputy Premier John Barilaro that all election commitments would be honoured and provided a letter from Health Minister Brad Hazzard responding to representations he made after winning the election.

In the letter, Mr Hazzard said the project was one of many promised but work would still start before the end of the current term of parliament.

“In the period prior to the March election, the NSW Government announced a significant number of upgrades to hospital and health facilities across the state,” he said.

“This requires a prioritisation of when projects will commence over the next four years and will occur in alignment with the annual budget process.

“Once funding is made available through the budget process, Health Infrastructure will work with the local health district and clinical staff to progress the project through the planning stages.”......

Monday 24 June 2019

Is Australia really a fair and just country or is it nothing more than a collection of Scott Morrison clones?


In 2017-18 there were on average 236 requests for housing assistance made every day which were not able to be met by specialist homelessness agencies across Australia.

This figure represents in excess of 86,000 requests for emergency housing assistance - from individuals, couples, parents with small children and elderly Australians -  which were not met in thatfinancial year.

Yet social housing stocks does not appear to be keeping pace with population growth or the needs of people living in insecure accommodation or existing on the street.

Social housing as a share of all housing has been falling since the start of this century and, in total state, territory and federal governments spent est. 2.1 per cent of total government expenditure on social housing and homelessness services in both 2016-17 and 2017-18 according to the Productivity Commission's Reporton Government Services in 2018 & 2019.

Affordable and available private rental is also in short supply.

Homelessness is not confined to the cities either. Here in the Northern Rivers region of New South Wales there are hundreds of people without accommodation.

By the end of 2018 the Australian population had grown to over 25 million people and an estimated 190,000 were on social housing waiting lists. 

The population now stands at an over 25,384,573, with est. one birth every 1 minute and 40 seconds, one death every 3 minutes and 19 seconds and one person arriving to live in Australia every 56 seconds,

At state, territory and federal levels government is well aware of the housing situation, yet Morrison & Co in particular still describe calls for further spending on government services such as housing as being calls based on the “politics of envy”.

These days I often read comments on social media asking when it was we stopped being a fair, just and kind country.

Well the truth is that Australia was never the fair, just and kind society we liked to think it was.

Just look at out history when it comes to Aboriginal Australia, children in institutional care, our aged and disability care systems and our treatment of refugees.

What governments since Federation have done is paper over the cracks between what we are and what we believe about ourselves. They did this by funding a wide range of government services to meet basic human needs like safety, shelter, food, education and health care.

Since 2013 the Abbott-Turnbull-Morrison Government has been walking away from adequately providing many of these basic services, by year in and year out failing to increase funding, reducing funding or cutting funding altogether.

BACKGROUND

This is what the Australian Parliamentary Library had to say on the subject of homelessness in March 2018:

On 14 March 2018, the Australian Bureau of Statistics (ABS) released their homelessness estimates, based on the 2016 Census of Population and Housing.
Under the ABS definition, a person is homeless if they do not have suitable accommodation alternatives and their current living arrangement:
 is in a dwelling that is inadequate, or

·         has no tenure, or if their initial tenure is short and not extendable, or

·         does not allow them to have control of, and access to space for social relations.
    The key homelessness estimates from the 2016 Census are that:
·         there were 116,427 people enumerated in the Census classified as being homeless on Census night (up from 102,439 in 2011)

·         the homelessness rate was 50 persons for every 10,000 persons—up five per cent from the 48 persons in 2011, and up on the 45 persons in 2006

·         the homelessness rate rose by 27 per cent in New South Wales, while Western Australia fell 11 per cent and the Northern Territory and Australian Capital Territory each fell by 17 per cent

·         most of the increase in homelessness between 2011 and 2016 was reflected in people living in 'severely' crowded dwellings, up from 41,370 in 2011 to 51,088 in 2016

·         the number of people in supported accommodation for the homeless in 2016 was 21,235; almost unchanged from 2011
·         there were 17,503 homeless people in boarding houses in 2016, up from 14,944 in 2011

·         the number of homeless people in improvised dwellings, tents or sleeping out in 2016 was 8,200, up from 6,810 in 2011

·         people who were born overseas and arrived in Australia in the last five years accounted for 15 per cent (17,749 persons) of all persons who were homeless

·         the rate of Aboriginal and Torres Strait Islander Australians who were homeless was 361 persons per 10,000 of the Aboriginal and Torres Strait Islander population, a decrease from 487 in 2011

·         the number of homeless persons aged 55 years and over continued to increase, from 12,461 in 2006, to 14,581 in 2011 and 18,625 in 2016 (a 28 per cent increase between 2011 and 2016). The rate of older persons experiencing homelessness has also increased, from 26 persons per 10,000 of the population in 2011 up to 29 persons per 10,000 in 2016 and

·         the male homelessness rate increased to 58 males per 10,000 males, up from 54 in 2011, while the rate for females remained steady at 42 per 10,000 females.

Severe crowding and social housing

As noted above, a majority of the increase in homelessness between 2011 and 2016 was a result of more Australians living in severely crowded dwellings. This was also the case between the 2006 and 2011 Censuses.

While homelessness is not just the result of too few houses, severe overcrowding does suggest that there is a need for more housing that is affordable to low- to middle-income earners, and social housing in particular. Social housing is housing that is managed by either state and territory housing authorities or community housing providers and made available at below market rates to people who are unable to access suitable accommodation in the private rental market.

Despite Australia’s social housing stock having grown over the years, this has not been at a rate sufficient to keep pace with household growth and demand. As at 30 June 2017, there were 189,404 applicants on the waiting list for social housing across Australia. A significant proportion of these applicants are likely to be households in greatest need—that is, households that are homeless, in housing inappropriate to their needs or that is adversely affecting their health or placing their life and safety at risk, or, have very high rental housing costs.

Severe overcrowding is particularly prevalent among Aboriginal and Torres Strait Islander people, with 70 per cent of homeless Indigenous Australians in this position. The latest homelessness estimates indicate that the rate of homeless Indigenous Australians fell between the 2011 and 2016 Censuses. If this rate is to continue to fall then this may hinge to some extent on the outcome of negotiations currently underway between the Australian Government and the states and territories over Commonwealth funding for housing for Indigenous people following the expiry of the National Partnership on Remote Housing in June 2018.

Homelessness by geography

In the linked spreadsheet, the Parliamentary Library has compiled homelessness estimates by ABS geographical areas and homelessness operational groups. Table 1 details total homeless persons by Statistical Area 2. Table 2 sets out total homeless persons by Statistical Area 3 and operational group.

Table 1 also lists the Commonwealth electorate that is most aligned with each SA2. Electorate estimates cannot be derived from this table.

Monday 3 June 2019

Even when trying to do the right thing are Morrison Government MPs hampered by the penny-pinching ways of their leader


Lismore City Council, 9 April 2019:

As a result of the significant flood event of April 2017 that impacted Lismore in the wake of ex-tropical Cyclone Debbie, Lismore City Council was successful in securing funding for the repair and remediation of a major landslip located at Beardow Street, Lismore Heights.

The initial works at an estimated and approved cost of $1.12 million were funded by the Natural Disaster Relief and Recovery Arrangements (NDRRA).

Contaminated soil was discovered during the restoration process and the cost of remediation is significantly greater than the currently available funding.

When contamination was discovered, eligibility for compensation through the NDRRA changed outside of Council’s control. Council was initially advised that the remediation was eligible for NDRRA funding. This advice was rescinded in late 2018. Negotiations with State agencies continue on this matter and work has stopped while funding issues are resolved.

The area is still contaminated and material needs to be removed. A schedule of works has been developed for full remediation of the site.

The residents in the vicinity of the landslip rightly seek a resolution to the issues associated with access to property, remediation, repairs to the landslip and the lack of clarity around timeframe for completion.

Residents have worked with Council to manage the issues and need closure. They are acutely aware of the process Council needs to follow and have justifiably reached a point where a solution is both required and demanded.

Council’s estimated cost to complete the remediation works is an additional $2.4 million. Council’s December 2018 quarterly budget review provides $700,000 to address the remediation at Beardow Street. Council has been advised of an alternate estimate to complete the works in the order of $5.7 million undertaken by an affected landowner. To date Council has been unable to source the estimated funding shortfall of $1.7 million from Government.

Council is continuing to negotiate a funding outcome. Council held an emergency meeting with Roads and Maritime Services (RMS) on Thursday, 14 March 2019 to find a solution. RMS management attended the site on Tuesday, 19 March 2019 to discuss options. A steering committee has been formed with Council and RMS staff. RMS has made available their geotechnical and environmental specialists, however no alternate solution has been recommended. RMS has made application to the Office of Emergency Management (OEM) for a review of NDRRA eligibility. OEM have escalated the matter to the Federal Government for review of eligibility, however there is no guarantee of success and no time frame for a response. On 29 March 2019 RMS requested Council make application for a Specific Purpose Grant. The outcome of this application is unknown.

The nearest licenced disposal site for the asbestos contamination is in Queensland. The Queensland waste levy comes into effect on 1 July 2019. The levy will add $2 million to the cost of the project in contaminated soil disposal costs.

Council has engaged litigation specialists to provide advice on NDRRA eligibility and options to secure funding. The current advice is to commence with formal correspondence to RMS and/or OEM. This action is underway.

The solution proposed is for Council to obtain the required $1.7 million shortfall from government. We require support from Council for the actions taken to date as well as support for any legal proceedings instigated to recover the restoration costs associated with this natural disaster event. 

On 26 April 2019 during the recent federal election campaign The Northern Star reported that all the candidates, including sitting Nats MP Kevin Hogan, had been asked to commit $10 million to fully remediate this site.

On 27 May 2019 a Lismore journalist stated that Hogan has committed $2.4 million to remediate the asbestos and chemical contaminated landslip. Although it was not explained how he could do this when the new Lib-Nats Coalition Government is weeks away from being sworn in by the Governor-General or why he was committing to less than a quarter of the money requested.

Council is still considering instigating legal proceedings to progress the eligibility of its initial claim for state funding.

Tuesday 7 May 2019

Lobby group giving farmers a bad name



The Guardian, 2 May 2019:

The Queensland farm lobby AgForce has deleted more than a decade worth of data from a government program that aims to improve water quality in the Great Barrier Reef, in response to state government moves to introduce new reef protection laws.

Guardian Australia revealed in June that the state’s auditor general had raised concerns that agriculture industry groups had refused to share data from the “best management practices” program due to privacy concerns.

In recent months, AgForce and others had campaigned against the imposition of new reef protection regulations, which set sediment “load limits” in reef catchments and impose new standards on farmers.

The proposed new laws, which have been introduced to state parliament, also include a provision to allow the environment minister to obtain data from agricultural groups……

The Queensland environment minister, Leeanne Enoch, told the Courier-Mail the decision flushed “so much work and the taxpayer dollars that have been supporting it out to sea”.

“AgForce often claims that they are true environmentalists but this decision is not the action of a group that wants to protect the environment,” she said.

The Queensland audit office last year found that the success of the best management practices program could not be properly measured because the agricultural groups that receive government funding would not provide data on whether producers had actually improved their practices.

“This detailed information is currently held by the industry groups,” the report said. “Despite this work being funded by government, the information is not provided to government due to privacy concerns from the industry.

“These data restrictions mean government does not have full visibility of the progress made and cannot measure the degree of practice change or assess the value achieved from its investment of public funds.

“This means that the reported proportion of lands managed using best management practice systems could be overstated.”

Friday 22 February 2019

People in rural and regional Australia – those bearing the brunt of climate change, drought, floods, limited services and inadequate infrastructure – deserve to know how the Morrison Government is spending their hard-earned tax dollars


Scratch the surface of that mismanaged super federal government department – the Dept. of Home Affairs in the portfolio of Minister for Home Affairs & Liberal MP for Dickson Peter Dutton – and one finds disturbing information.

Usually this information concerns the abuse of detained asylum seekers' human rights, including right to timely medical treatment and legal advice/representation.

This latest concerns a corporate entity variously identified as the Paladin Group (Paladin Australia Pty Ltd, formerly Paladin Group Pty Ltd, High Risk Security Group (Asia-Pacific) Pty Ltd, Nepean Bay SA), Paladin Solution PNG Ltd (Nepean Bay SA) and Paladin Holdings PTE Ltd (Singapore) and its est. $423 million in federal government contracts paid for from the taxpayer's dollar.

It is Paladin Holdings PTE Ltd out of Singapore (reportedly owned by Craig Trupp and Ian Stewart) which now appears to hold the primary government contract.

Despite Paladin's thin capitalisation, despite lack of corporate transparency, despite allegations of poor service delivery, despite Craig Trupp/s less than stellar business history and the fact that it appears he is no longer allowed entry to Papua New Guinea and despite another director of Paladin Solutions PNG Ltd allegedly being investigated for fraud/money laundering the Dept. of Home Affairs continues to make exclusive contacts with the Paladin Group.

This Paladin contract is fast shaping up as the new catchphrase for suspected political corruption………..

Paladin premises, Port Moresby. Image Dan Ilic
Financial Review, 17 February 2019:

The family of one of PNG's most powerful politicians is directly benefiting from Paladin's $423 million worth of security contracts on Manus Island, awarded by the federal government in a closed tender.

Documents released under Freedom of Information show in January last year Paladin Solutions PNG entered into an agreement with Peren Investment, a company controlled by the brothers of PNG's parliamentary speaker, Job Pomat.

Mr Pomat is the local member for Manus, a key ally of Prime Minister Peter O'Neill and deputy leader of the ruling People's National Congress. His family are among those who claim traditional ownership of the land where the refugees are being housed.

The agreement, for local employment and the provision of other services, came just a month after landowners blockaded the refugee transit centre in December 2017, demanding a greater share of the money being spent on the island.

When asked about any link between Paladin and PNG politicians, Attorney-General Christian Porter said it was not in his portfolio area, but such claims warranted further investigation.

"I don't have any line of sight into those sorts of claims and they have to be investigated thoroughly," he told the ABC's Insiders program on Sunday.

The issue is set to be examined further at Senate Estimates hearings on Monday and Tuesday, after a series of articles in the The Australian Financial Review raised questions about how the thinly capitalised Paladin, which had little experience, a poor reputation and no corporate structure, was awarded such a lucrative contract.
The contracts were awarded as part of a "limited tender", which typically means only one party was invited to bid.

In the days following the first Financial Review articles Paladin shuffled its ownership structure, removed information from its website and changed its Australian registered office from a beach shack on Kangaroo Island to a serviced office in Canberra. That office did not have the phone connected on Friday.

Financial Review, 15 February 2019:

One issue that raised concern was Paladin's peculiar head office set-up. The Kangaroo Island address had no listed phone number and could not receive mail from Australia Post, highlighting a general air of secrecy around the company.

The Financial Review, 13 February 2019:

Home Affairs Minister Peter Dutton has moved to distance himself from a controversial government contractor that is providing security on Manus Island, arguing he had "no sight" of the tender process and it was a matter for department officials.

In the first public comments since The Australian Financial Review revealed little-known company Paladin was earning up to $17 million a month to provide security at three refugee centres on Manus Island after a closed tender process, Mr Dutton said those responsible were "the secretary of the department ultimately or delegated to someone within the department".

The Financial Review, 11 February 2019:

The key beneficiary of a $423 million government contract to provide security for refugees on Manus Island left a string of bad debts and failed contracts across Asia, raising further questions about how the Paladin group won such a lucrative tender.

As pressure builds on the government to explain the hefty cost of its offshore processing regime, further details have emerged about the Paladin founder, Craig Thrupp, and his time in East Timor and Indonesia.

The Financial Review, 10 February 2019:

As federal Parliament prepares for another fractious debate around refugees on Monday, an investigation by The Australian Financial Review has found the Department of Home Affairs overlooked allegations of deception, lying during the tender process and questionable payments when it extended Paladin's contract on January 3. These allegations emerged during a bitter legal dispute between Paladin and its former chief executive for PNG, Craig Coleman, who is suing the company for breach of contract.

In addition, Paladin's founder and key executive, Craig Thrupp, is no longer able to enter PNG, while another local director, Kisokau Powaseu, was detained in Port Moresby last month and charged with misappropriating funds and money laundering……

Paladin, controlled by Mr Thrupp, a former Australian soldier, and his business partner Ian Stewart, has also recently purchased the contentious PNG security outfit Black Swan, a company repeatedly forced to deny rumours it has links to the family of Prime Minister Peter O'Neill…..

"Australian taxpayers are expending a huge amount of money but we don't see much of it being utilised on the ground in Manus," said Abdul Aziz, a Sudanese refugee who has been on the island for five years.

"The maintenance service is very poor … and they have not bought any new equipment in many years," says Mr Aziz.

This was confirmed by a UNHCR report published last July which noted rooms at the East Lorengau camp were below international shelter standards for accommodation over three months, while other areas had leaking pipes, a lack of fire alarms and showers that were not working.

The report did however note improvements in other areas like the ratio of toilets and the general accommodation conditions in other camps.

Calculations by the Financial Review indicate Paladin is being paid on average $20.8 million a month by the government to provide security at all three sites and manage the East Lorengau Transit Centre. That amount has risen 48 per cent from an average of $14 million a month last year. A Home Affairs spokesperson said there were now 422 people housed at the three camps – 213 at East Lorengau, 111 at West Lorengau and 98 asylum seekers at Hillside Haus.

That means on a daily basis it now costs the Australian government over $1600 to house each refugee on Manus, not including food and welfare services, more than double the price of a suite at the Shangri-La hotel in Sydney.

Typically, profit margins are as much as 40 per cent on these contracts because of the risks involved. However, Paladin's margin is "unbelievable", according to one source familiar with the this type of work. That's because the company uses mostly local staff and its security guards earn about $2 an hour.

The company is believed to have just over a dozen expatriate staff, who might be earning $150,000 each. Home Affairs says it provides security, transport, IT services and emergency management. Even if you build in generous contingencies for evacuations, emergency response teams and local consultants, Paladin's total costs are estimated to be less than $3 million a month. That means they are pocketing more than $17 million a month to manage the East Lorengau centre and secure the three camps, which have been used as primary accommodation for refugees and asylum seekers since the offshore processing centre at the nearby Lombrum naval base was closed in October 2017.

The Guardian, 17 February 2019:

Penny Wong has indicated Labor will target the Paladin offshore detention security contract in Senate estimates this week, accusing the government of failing to explain why the company was awarded $420m in contracts through closed tender…..

Wong told reporters in Adelaide the Paladin contract had “a lot of questions around it” and it was “deeply concerning” a company with “such a poor track record” was awarded $420m.

Wong accused Porter of giving answers that were “not consistent” with Dutton’s because “this went to a closed tender – not an open tender, [it was] not an open competitive process”.

Wong accused Dutton of “trying to wash [his] hands of it”. “Tomorrow is Senate estimates – what I’d say to the government is: stop hiding.

“Why don’t you front up and tell the truth about why that contract is awarded in such circumstances, why it went to closed tender?”

Financial Review, 18 February 2019:

Paladin, the security firm at the centre of the $423 million contract scandalhas a secret office in Canberra, just three kilometres from Parliament House.

The Australian Financial Review visited an office location near the fashionable Kingston Foreshore precinct in which Paladin staff are based.

That address, however, is different to the Canberra location that was provided to corporate regulators as the company's registered office and principal place of business, in a filing last week.

Paladin had previously advised the corporate regulator that its registered office and principal place of business was a remote location on Kangaroo Island in South Australia that had no post box and was therefore unable to receive mail.

But as coverage of the secretive company, which has been awarded contracts totalling $423 million to provide security on Manus Island, has intensified, Paladin has since made changes to its address and shareholder structure.

Paladin Australia notified regulators that its shareholding had transferred from the company's Hong Kong-registered entity to the Singapore company, which is the entity granted a government contract worth $333 million. The company is owned by 38-year-old, Canberra-born former soldier CraigThrupp and 41-year-old Ian Duncan Stewart.

On Thursday, Paladin Australia also changed its registered address to a serviced office in the suburb of Barton. As of Friday, the company had not been set up with phones to receive calls.

But sources with knowledge of the company, said Paladin actually operated out of another Canberra location on Eyre Street in the Kingston district.

That address is two kilometres away from the Servcorp address provided to regulators.

There's no signage or branding of any kind outside the office and apartment block and the ground floor workspaces are covered by heavy blinds.

When the Financial Review buzzed the intercom for the unmarked offices on the ground floor, a woman answered and Mr Thrupp came to the entrance.

He did not identify himself or make any comment before going back inside the locked entrance.

Staff walked back and forth between the two secure office areas, using electronic access cards to enter and exit.

The secret office location raises further questions about Paladin and its apparent attempts at hiding its principal place of business.

Paladin's previously registered office in Kangaroo Island had no mail box, which made it near impossible for the company to receive mail and be served legal documents.

Financial Review, 19 February 2019:

Paladin affair: Fact-checking what Home Affairs said in Senate Estimates

The beach shack

Home Affairs dismissed Paladin having its Australian head office at a "beach shack" on Kangaroo Island as unimportant, saying that entity was not involved in the Manus Island contract.

Court documents show Paladin's former chief executive, Craig Coleman, who was the project director for Manus Island and exercised control over the Commonwealth contract was employed by the Australian company, which was registered to that beach shack on Kangaroo Island.

In November 2017, two months after Paladin Solutions signed its first letter of intent with the Australian government it registered with Australian regulators as a foreign entity. The registered office it provided was the "beach shack". Both directors provided this location as their address.

Fraud and money laundering

Home Affairs said the Paladin director Kisokau Powaseu who has been charged with 106 counts of fraud and one of money laundering was not a director of any entities contracted to the Commonwealth.

Under questioning Home Affairs conceded Mr Powaseu was a director of Paladin Solutions, the entity which received $89 million of payments after a letter of intent was signed in September 2017.

Paladin Solutions is registered in PNG and is a wholly owned subsidiary of Paladin Singapore, the entity which currently holds the $333 million government contract. Mr Powaseu was appointed a director of the company in May 2018.

In court documents relating to Paladin's dispute with its former CEO Mr Coleman, the company agrees Mr Powaseu was a director of Paladin Solutions PNG which was "engaged with the Australian government".

The Paladin web

The department expanded and contracted the Paladin group of companies at its convenience. On the issue of Powaseu, the department was quick to stress the point that this individual had no ties to Paladin Singapore, the entity contracted by the Australian government. (This was later found to be inaccurate - see the Fraud and money laundering section of this story.)

However, when the department wished to demonstrate Paladin's long track record, it was prepared to refer to other companies in the group including Paladin Solutions, Pomwan Paladin and Paladin Aus.

'Global' Company

Home Affairs also relied on Paladin's collection of subsidiaries in stressing it was "a global company" with clients across the region. Deputy secretary Cheryl-Anne Moy said Paladin has "a very extensive and a very experienced operation" listing among its key clients the Australian Defence Force, which used it for APEC security support and the Department of Foreign Affairs and Trade for which it had provided security in Port Moresby for nearly three years.

The department later clarified that those clients had come to the firm via Paladin's mysterious purchase of one of PNG's biggest private security firms, Black Swan, in July last year. That was followed by an interjection from one of the senators who said the purchase had come about because "you gave them so much money." At the time the government awarded Paladin the sizeable contract, it did not have these clients.

Home Affairs also conceded Paladin's lack of experience in dealing with sizeable contracts had been one of the risks identified during the tender process. While Paladin had been operating on Manus Island, as a subcontractor to Broadspectrum and Wilson Security, these had been much smaller contracts.

In his statement of claim, former CEO Mr Coleman claimed just three weeks before being awarded the September 2017 contract Paladin was "not well prepared to perform the role provided for under the Proposal".

"Paladin did not have the corporate structure, human and other resources or processes that would permit it … to perform the roles required under the Proposal," he alleged.

Money up front

When asked whether Paladin was advanced $10 million of funds by the government prior to delivering services as part of the contract, Home Affairs initially said this was false.

Upon further questioning, it emerged Paladin was paid $5.5 million as part of a letter of intent ahead of any services it provided and subsequently received further payments totalling $89 million before a formal contract had been agreed.

Access denied

Home Affairs said it had to check whether it was made directly aware Paladin managing director and part-owner Craig Thrupp was unable to enter PNG.
That is despite the PNG government confirming on Monday "the visa of one of the directors of the company [Paladin] was cancelled because of the company not adhering to the government's position on recruitment of local labour".


Paladin also confirmed to the Financial Review a week earlier Mr Thrupp's APEC Permit (a regional visa) had been cancelled and said since then he had not attempted to enter PNG…..

BACKGROUND

Australian Government, AusTender, retrieved 18 February 2019:

CN ID: CN3496748-A2
Agency: Department of Home Affairs
Amendment Publish Date: 3-Jan-2019
Category: Management support services
Contract Period: 28-Feb-2018 to 30-Jun-2019
Contract Value (AUD): $333,546,146.40
Amendment Value (AUD): $109,239,312.00
Amendment Start Date: 1-Jan-2019
Description: Garrison Services at ELRTC & additional sites PNG
Parent CN: CN3496748
Procurement Method: Limited tender
Limited Tender Condition: 10.3.e. Additional deliveries by original supplier intended as replacement parts, extensions, or continuation for existing goods or services for compatibility.
Confidentiality - Contract: No
Confidentiality - Outputs: No
Consultancy: No
Agency Reference ID:0070021821
Supplier Details
Name: PALADIN HOLDINGS PTE LTD
Postal Address: 4 Battery Road China Building
Town/City: Singapore
Postcode: 049908
State/Territory: Outside Australia
Country: SINGAPORE
ABN: Exempt
____________________________________
CN ID: CN3496748-A1
Agency: Department of Home Affairs
Amendment Publish Date: 29-Oct-2018
Category: Management support services
Contract Period: 28-Feb-2018 to 30-Jun-2019
Contract Value (AUD): $224,306,834.40
Amendment Value (AUD): $47,430,000.00
Amendment Start Date:
1-Nov-2018 Description: Garrison Services at ELRTC & additional sites PNG
Parent CN: CN3496748
Procurement Method: Limited tender
Limited Tender Condition: 10.3.e. Additional deliveries by original supplier intended as replacement parts, extensions, or continuation for existing goods or services for compatibility.
Confidentiality - Contract: No
Confidentiality - Outputs: No
Consultancy: No
Agency Reference ID: 0070021821
Supplier Details
Name: PALADIN HOLDINGS PTE LTD
Postal Address: 4 Battery Road China Building
Town/City: Singapore Postcode: 049908
State/Territory: Outside Australia
Country: SINGAPORE
ABN: Exempt
____________________________________
Provision of Garrison Services at East Lorengau Refugee Transit Centre, Manus
CN ID: CN3470670
Agency: Department of Home Affairs
Publish Date: 27-Nov-2017
Category: Management support services
Contract Period: 21-Sep-2017 to 28-Feb-2018
Contract Value (AUD): $89,243,817.76 [contract value delivered by four separate letters of intent as per Senate Estimates Legal and Constitutional Affairs Legislation Committee evidence on 18.02.2019]
Original: $39,743,817.76
Description: Provision of Garrison Services at East Lorengau Refugee Transit Centre Manus
Amendments:
CN3470670-A2 - change to contract term & value (23-Feb-2018)
Amendment Value (AUD): $16,500,000.00
CN3470670-A1 - Increased value and extended end date (28-Dec-2017)
Contract Value (AUD): $72,743,817.76
Procurement Method: Limited tender
Limited Tender Exemption: Paragraph 2.6 was applied in some part. [This contract was a direct approach to Paladin by way of an initial special measures arrangement as per Senate Estimates Legal and Constitutional Affairs Legislation Committee evidence on 18.02.2019. A departmental decision was later taken to include future contacts with Paladin Holdings Singapore as special measures rather than conduct open tenders]
ATM ID: RFQ1750034
Confidentiality - Contract: No
Confidentiality - Outputs: No
Consultancy:No
Agency Reference ID: 0070020581
Supplier Details
Name: PALADIN SOLUTIONS PNG LTD
Postal Address:
PARK TOWER ANNEX, SECTION 25, ALLOTMENT 35, HUNTERS STREET, GRANVILLE
Town/City: NATIONAL CAPITAL DISTRICT
Postcode:125
State/Territory: Outside Australia
Country: PAPUA NEW GUINEA
ABN: Exempt