Offshore detention contracts overseen by the Department of Home Affairs under the former coalition government will be reviewed following claims about their mismanagement.
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Opposition Leader Peter Dutton, who was home affairs minister between late 2017 and early 2021, has been under fire over his role in the Morrison government.
Nine newspapers reported last week on documents tabled in parliament which showed Australian Federal Police told Mr Dutton in July 2018 that Sydney-based Mozammil Bhojani was under investigation over suspected bribes to Nauruan politicians.
The payments were made to secure preferential access to millions of dollars worth of phosphate for Mr Bhojani's company Radiance International.
Despite the advice, the department entered into a fresh $9.3 million contract with Radiance to provide accommodation for refugees and asylum seekers.
A month after the contract was signed, police arrested Mr Bhojani and charged him with paying bribes to two Nauruan officials.
He pleaded guilty and was convicted in 2020.
Home Affairs Minister Clare O'Neil says former senior public servant Dennis Richardson will conduct an audit of governance arrangements for the management of regional processing contracts.
"They're serious allegations and there is serious money involved," she told parliament.
In a statement on Monday, she said a number of "serious issues relating to the governance of contracting related to regional processing have been placed on the public record" in recent weeks.
"They merit detailed and thorough examination," Ms O'Neil said.
The review will report to the home affairs and finance ministers and be considered by cabinet's national security committee.
Returning from leave on Monday, Mr Dutton backed a separate anti-corruption watchdog investigation into the contracts.
He said he was happy to co-sign, with the prime minister, a letter of referral to the National Anti-Corruption Commission.
"If there are allegations, then refer them to the NACC," Mr Dutton told reporters in Canberra.
"But refer them back to the period of 2012 when the procurement arrangements were put in place (and Labor was in government)."
Mr Dutton said he had checked his records for a briefing he allegedly received from the AFP but could not find anything.
"As minister, I had no involvement whatsoever in relation to the contract negotiations, the execution of the agreements, and that's true for all the predecessors," he said.
"I have nothing to hide."
Mr Dutton said he has requested a meeting with the AFP commissioner through the minister's office and is waiting for it to be cleared.
Prime Minister Anthony Albanese said the matter would not be referred to the integrity commission, as it would be thoroughly examined by the independent review.
"In particular, we will consider any integrity concerns about contracting arrangements regarding regional processing ... not just to look at what's happened in the past, but to make sure that appropriate mechanisms are put in place in the future," he told parliament.
Australian Associated Press
