Immigration department slammed for not recording over $1 billion in payments

Accommodation buildings at the Nauru detention centre on 20 July, 2013, after the rioting and fires that destroyed much ...
Accommodation buildings at the Nauru detention centre on 20 July, 2013, after the rioting and fires that destroyed much of it. Peter Cox

The audit office has accused the immigration department of not keeping records on $1.1 billion worth of payments and of "serious and persistent deficiencies" in administration in a new report.

Among the findings in the report is the revelation that immigration did not update government insurer Comcover that it had new buildings on Nauru worth $75 million, meaning the installations were not insured when they burnt down in a 2013 riot shortly after being built.

The report comes after a separate damning audit was released in September on the same department, suggesting it had ripped off taxpayers, treated rival tenderers unfairly and allowed a contract with detention centre administrator Broadspectrum to blow out by $1.1 billion without seeking other quotes.

The report highlights $2.3 billion in payments made to providers such as Broadspectrum (formerly Transfield), G4S, Save the Children, The Salvation Army and Wilson Security between September 2012 and April 2016.

It said of this figure $1.1 billion was approved by immigration staff who did not have the required authorisation to wave through the payments "and for the remaining $1.1 billion there was no departmental record of who authorised the payments".

The audit office authors appeared exasperated with the department's response to a number of audits it has completed.

"The ANAO has conducted six audits since 2004 that have focused on the department's management of detention centre contracts. Each of these audits identified shortcomings in the department's contract management and/or procurement of detention services.

"Taken together, the audit findings point to serious and persistent deficiencies in the department's administration," the report authors wrote.

The report said the department did not properly keep records nor did it document how contractors kept to what both parties had agreed to.

In particular the report says Transfield had agreed to but did not "provide full substantiation for all pass through costs" and the department did not follow up. The department then requested records late last year in response to the audit office inquiries.

The audit also suggests the department left the onus on providers to keep adequate records of audio visual material which may have led to the loss of terabytes worth of footage.

"DIBP has no assurance that the visual records retained by the subcontractor are in keeping with the centre guidelines, which prevent the capture of visual records of the centres and of asylum seekers, with the exception of incidents and CCTV footage.

"In addition, the department could not make available any records to demonstrate that the privacy of individuals, including in relation to filming children without parental consent, had been considered in respect of filming, handling or storage of these digital records," the report authors wrote.

Broadspectrum said it had complied with obligations under its contract with the immigration department and said it was unable to respond fully as it was not provided a full draft of the audit.

The department recently extended its contract with Broadspectrum, covering the detention centres on Nauru and Manus Island, until October 2017, when the government will have to find a new contractor as new Spanish owners Ferrovial said it would not re-tender.