{"id":138533,"date":"2024-10-10T13:46:36","date_gmt":"2024-10-10T03:46:36","guid":{"rendered":"https:\/\/www.vibewire.com.au\/?p=138533"},"modified":"2024-10-10T13:46:37","modified_gmt":"2024-10-10T03:46:37","slug":"nacc-finds-no-corruption-in-paladin-investigation","status":"publish","type":"post","link":"https:\/\/www.vibewire.com.au\/?p=138533","title":{"rendered":"NACC finds no corruption in Paladin investigation"},"content":{"rendered":"\n<p>The National Anti-Corruption Commission (NACC)&nbsp;<a href=\"https:\/\/www.nacc.gov.au\/investigation-reports\">has revealed<\/a>&nbsp;operational details of a multi-year investigation into the&nbsp;<a href=\"https:\/\/www.afr.com\/politics\/the-paladin-affair-follow-the-money-20190221-h1bjju\">Paladin affair<\/a>.<\/p>\n\n\n\n<p>Operation Bannister investigated whether a Home Affairs employee \u201cclosely related\u201d to Paladin founder Craig Thrupp had misused her office.<\/p>\n\n\n\n<p>Paladin was paid more than half a billion dollars to manage services in Australia\u2019s Manus Island detention centre between 2017 and 2019.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>NACC finds no corruption in Paladin investigation. Please read the facts. They are staggering.<\/p>\n\n\n\n<p>This finding highlights that the watering down of the NACC legislation between the Govt &amp; Coalition has made it ineffective.<\/p>\n\n\n\n<p>Act clearly needs amending<\/p>\n<\/blockquote>\n\n\n\n<p>The former senior executive, pseudonymously referred to as Anne Brown, received more than $194,000 from Paladin for \u201cmanagement and consulting services\u201d in 2017.<\/p>\n\n\n\n<p>Brown told the NACC she had used these funds to repay her home loan, but had not done any work for Paladin.<\/p>\n\n\n\n<p>Her partner, retired Home Affairs executive Carl Delaney, assisted Paladin with its tender. While he did not have a formal role until he joined Paladin\u2019s board of directors in 2019, he was paid $5,000 for his help.<\/p>\n\n\n\n<p>The following year, Thrupp bought Brown and Delaney another apartment in the same building, worth $920,000. He also paid for their furniture.<\/p>\n\n\n\n<p>Two months later, they rented it back to Paladin for $1,000 a week.<\/p>\n\n\n\n<p>The property was sold in 2020. Brown and Delaney kept the money.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>Just Unbelievable.  Corruption in Australia is no longer the exception it has actually now become the rule.<\/p>\n<\/blockquote>\n\n\n\n<p>The report concludes that while Brown failed to disclose \u201cchanges in circumstances\u201d, she had not behaved dishonestly, or used her position for personal benefit.<\/p>\n\n\n\n<p>\u201cAlthough the reporting obligation is limited to \u2018events that may affect your suitability to hold a security clearance, the change in her relationship status and cohabitation with Delaney, and the receipt of substantial gifts of money and property from a family member, were arguably reportable changes of circumstances.<\/p>\n\n\n\n<p>\u201cFrom April 2018 she was on long-service leave pending retirement \u2026 [she] considered she had no further obligation to make declarations of interest or changes in her circumstances.<\/p>\n\n\n\n<p>\u201cThe changes in her financial circumstances were not adverse, but improved her financial position.<\/p>\n\n\n\n<p>\u201cThat the donor was a close relative (not a stranger, nor a foreign national) \u2026 suggests she should have known that at least her relationship with Mr Delaney ought to have been reported.\u201d<\/p>\n\n\n\n<p>Commissioner Paul Brereton said given Brown\u2019s status as an outgoing employee, her actions were \u201cunderstandable\u201d.<\/p>\n\n\n\n<p>\u201cThe non-disclosure does not appear to have been intentional, let alone dishonest or corrupt,\u201d he said.<\/p>\n\n\n\n<p>\u201cGiven her position and duties at the relevant time, there was no potential conflict.\u201d<\/p>\n\n\n\n<p>Paladin has been the subject of intense public scrutiny since it minted contracts with the government in 2017.<\/p>\n\n\n\n<p>The company was the&nbsp;<a href=\"https:\/\/www.afr.com\/policy\/foreign-affairs\/home-affairs-ran-closed-tenders-for-paladins-lucrative-manus-security-contracts-20190212-h1b5ym\">only applicant<\/a>&nbsp;invited to a limited tender process for Manus Island contracts after Transfield announced they were getting out of offshore detention.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.homeaffairs.gov.au\/foi\/files\/2024\/fa-190201243-or1-document-released.PDF\">Internal documents from 2017 revealed<\/a>&nbsp;Home Affairs approached Paladin because Paladin had already worked there under a subcontract with Wilson Security, who was subcontracted by Transfield.<\/p>\n\n\n\n<p>Less than a year earlier, the Australian National Audit Office (ANAO)&nbsp;<a href=\"https:\/\/www.anao.gov.au\/work\/performance-audit\/offshore-processing-centres-nauru-and-papua-new-guinea-procurement-garrison-support-and-welfare\">published a scathing audit<\/a>&nbsp;of Home Affairs contract management.<\/p>\n\n\n\n<p>It accused the department of \u201cserious and persistent deficiencies\u201d in its procurement process.<\/p>\n\n\n\n<p>\u201cOf most concern is the department\u2019s management of processes for contract consolidation and the open tender,\u201d it says.<\/p>\n\n\n\n<p>\u201cThe department used approaches which reduced competitive pressure and significantly increased the price of the services without government authority to do so.\u201d<\/p>\n\n\n\n<p>Paladin was given an additional $109 million to operate offshore detention in 2019. This brought its contract total with Home Affairs to $532 million.<\/p>\n\n\n\n<p>In 2020, ANAO found Home Affairs contract management had improved, but\u00a0<a href=\"https:\/\/www.anao.gov.au\/work\/performance-audit\/procurement-garrison-support-and-welfare-services\">still identified concerns<\/a> with the Paladin contract.<\/p>\n\n\n\n<p>Between May 2018 and October 2019, Paladin was penalised 5,484 times by the department, largely for failures to meet deadlines and keep records.<\/p>\n\n\n\n<p>Brereton said sustained public interest in the Paladin saga had prompted the NACC to publish the report.<\/p>\n\n\n\n<p>\u201cHome Affairs\u2019 engagement of Paladin Holdings has been the subject of media attention and this public report will assist in \u2018clearing the air\u2019 in relation to this aspect of the engagement,\u201d he said.<\/p>\n\n\n\n<p>The Mandarin + Story<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The National Anti-Corruption Commission (NACC)&nbsp;has revealed&nbsp;operational details of a multi-year investigation into the&nbsp;Paladin affair. Operation Bannister investigated whether a Home Affairs employee \u201cclosely related\u201d to [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":138534,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[273,999,35,3356],"tags":[5982,13745,13837],"class_list":["post-138533","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-australia","category-australia-politics","category-breaking-news","category-corruption","tag-canberra","tag-nacc","tag-paladin"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=\/wp\/v2\/posts\/138533","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=138533"}],"version-history":[{"count":1,"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=\/wp\/v2\/posts\/138533\/revisions"}],"predecessor-version":[{"id":138535,"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=\/wp\/v2\/posts\/138533\/revisions\/138535"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=\/wp\/v2\/media\/138534"}],"wp:attachment":[{"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=138533"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=138533"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=138533"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}