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Australian company on Manus 'lacked honesty and integrity' – US agency Australian company on Manus 'lacked honesty and integrity' – US agency
(4 months later)
An Australian company contracted on Manus Island was described by the US government as having “a lack of business honesty and integrity” and was previously banned from seeking contracts in the US.An Australian company contracted on Manus Island was described by the US government as having “a lack of business honesty and integrity” and was previously banned from seeking contracts in the US.
Raecorp International was awarded a $48,048 contract from Australia’s Department of Defence to provide “refuse collection and disposal” from April 2011 to June 2014 on the island, which also houses one of Australia’s offshore processing centres. The company has received more than $2m for other defence contracts since January 2011. Raecorp International was awarded a $48,048 contract from Australia’s Department of Defence to provide “refuse collection and disposal” from April 2011 to June 2014 on the island, which also houses one of Australia’s offshore processing centres. The company has received more than $2m for other defence contracts since January 2011.
But Guardian Australia can reveal that in June 2010 the US defence logistics agency found the company had filed inappropriate tax claims, not complied with terms of its contracts and had failed to pay subcontractors. The gravity of Raecorp’s conduct was so serious the agency applied to have the company debarred.But Guardian Australia can reveal that in June 2010 the US defence logistics agency found the company had filed inappropriate tax claims, not complied with terms of its contracts and had failed to pay subcontractors. The gravity of Raecorp’s conduct was so serious the agency applied to have the company debarred.
In a scathing decision that described Raecorp’s conduct as a “wilful failure to perform”, Susan Chadick, special assistant for contracting integrity, wrote: “With such poor performance respondents have demonstrated a lack of business honesty and integrity which cannot be tolerated in government contractors.In a scathing decision that described Raecorp’s conduct as a “wilful failure to perform”, Susan Chadick, special assistant for contracting integrity, wrote: “With such poor performance respondents have demonstrated a lack of business honesty and integrity which cannot be tolerated in government contractors.
“I have determined that respondents do not possess the level of responsibility required of those who do business with the government and that a period of debarment is necessary to ensure the full protection of the government's business interests.”“I have determined that respondents do not possess the level of responsibility required of those who do business with the government and that a period of debarment is necessary to ensure the full protection of the government's business interests.”
The company and related entities UBS Provedores and USS-UBS International were barred from seeking contracts with the US government for three years. William Rae, the director and sole shareholder of Raecorp, was barred for two years.The company and related entities UBS Provedores and USS-UBS International were barred from seeking contracts with the US government for three years. William Rae, the director and sole shareholder of Raecorp, was barred for two years.
A spokeswoman for the immigration minister, Scott Morrison, said Raecorp was not responsible for waste management at the asylum seeker processing centre.A spokeswoman for the immigration minister, Scott Morrison, said Raecorp was not responsible for waste management at the asylum seeker processing centre.
“Transfield Services Australia is responsible for waste management at the Manus Island offshore processing centre (OPC) under its garrison and welfare contract with the Department of Immigration and Border Protection,” she said.“Transfield Services Australia is responsible for waste management at the Manus Island offshore processing centre (OPC) under its garrison and welfare contract with the Department of Immigration and Border Protection,” she said.
“Neither Transfield nor the Department of Immigration and Border Protection have a relationship with Raecorp International in relation to waste management at the Manus Island OPC.”“Neither Transfield nor the Department of Immigration and Border Protection have a relationship with Raecorp International in relation to waste management at the Manus Island OPC.”
Raecorp and the defence department have not responded to questions about the contracts.Raecorp and the defence department have not responded to questions about the contracts.
The previous manager of the detention centre, G4S, was replaced by Transfield Services in February.The previous manager of the detention centre, G4S, was replaced by Transfield Services in February.
Waste management on the island was also found to be a high priority in an environmental impact assessment for an expansion of the detention centre leaked to Guardian Australia.Waste management on the island was also found to be a high priority in an environmental impact assessment for an expansion of the detention centre leaked to Guardian Australia.