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MTC’s $2.3bn Australian detention contract under fire as safety breaches mount

Regulator Comcare cites contraventions of health and safety laws while Home Affairs Minister Tony Burke meets executives over staffing shortages and escapes

Author
Owen Mercer
Markets and Finance Editor
Published
Draft
Source: The Guardian Business · original
Business
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Exclusive reporting reveals catastrophic security failures at centres operated by US private prison firm via subsidiary Secure Journeys

Exclusive reporting has uncovered severe security breaches and systemic staffing shortages at Australian immigration detention centres operated by the US private prison company Management and Training Corporation (MTC). Through its local subsidiary Secure Journeys, the firm manages a $2.3 billion contract for onshore detention, yet internal documents and regulator findings indicate a ‘minimalist staffing model’ that has precipitated over 12 escapes, a stabbing incident, and staff hospitalisations.

Federal work safety regulator Comcare has warned of serious risks to both workers and detainees, citing contraventions of health and safety laws. The regulator’s investigation identified a disturbing lack of basic processes, including documented inductions and emergency preparedness activities. In late July, Comcare privately issued a report to the Department of Home Affairs, stating that the department failed to ensure the health and safety of workers, exposing them to foreseeable risks in the event of an emergency.

The operational failures have drawn high-level government attention. In September 2025, Home Affairs Minister Tony Burke met with MTC executives, including global president Dan Marquardt, to address the deteriorating conditions. The meeting followed a series of incidents, including a detainee stabbing a worker during a transport operation and two staff members requiring hospitalisation for smoke inhalation after responding to a fire without appropriate respiratory equipment.

Financial and logistical barriers continue to complicate the government’s position. Despite imposing hundreds of thousands of dollars in performance fines, known as abatements, the department faces significant hurdles in terminating the contract. A departmental source described the situation as a “sinking ship,” noting that potential replacements are limited and retooling would take months. The government is effectively locked into the five-year agreement, with one source suggesting that only a major catastrophe such as a death might trigger a change.

Security protocols have also come under scrutiny for being either inadequate or overly punitive. Following the escape of a high-risk offender from a hospital escort, MTC instructed transport teams to use mandatory restraints for all detainees, a move legal experts warn could be unlawful. Meanwhile, staff shortages have left critically ill detainees missing medical appointments, with the National Preventive Mechanism reporting that low staffing levels are compromising centre safety.

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