The Australian Greens have called for Transfield Services and Wilson Security to be "disqualified" from providing welfare and security services on Nauru after a Senate inquiry found the island's detention centre was poorly managed.
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The 207-page report released by a select committee investigating alleged human rights abuses concluded that Transfield and security services sub-contractor Wilson were "not properly accountable" to the Department of Immigration and Border Protection.
"It appears to the committee that the regional processing centre on Nauru is not run well, nor are Wilson Security and Transfield Services properly accountable to the Commonwealth despite the significant investment in their services," the report said.
But Transfield's shares rose 9.5¢, 9 per cent, to $1.17 on Monday after the company said the Department of Immigration had chosen it as the preferred tenderer for a new five-year contract that would enable it to provide expanded services on Nauru and Manus Island from November.
Education, child protection, welfare and recreation services previously provided by Save the Children to asylum seekers in Nauru will now be taken on by Transfield, according to the child rights agency. Save the Children unsuccessfully bid as part of a consortium to continue providing the services when its contract expires at the end of October.
Transfield has been providing services on Nauru, which has 637 asylum seekers, since September 2012, and on Manus Island since early 2014. Its existing $2.2 billion contract with the Department of Immigration for both centres will expire on October 31.
The Senate report said 30 formal allegations of child abuse had been made against Transfield staff working at the Nauru centre, as well as 15 allegations of sexual assault or rape and four allegations related to the exchange of sexual favours for contraband.
It also said Wilson Security had released details of 11 cases in which its staff were sacked for misconduct, including alleged sexual assault and excessive uses of force.
The Senate inquiry found the current system of having contractors managing complaints was "inadequate". Transfield has been managing the complaints process for asylum seekers since February 2014.
"The Department of Immigration does not have full knowledge of incidents occurring on Nauru, owning to their inability to scrutinise their contracted service providers," the report said.
The Australian Greens said ongoing management of the centre should only be done by the government, or qualified welfare and social workers from a not-for-profit organisation, and called for Transfield and Wilson Security to be disqualified from contracts.
The Liberals, who held two seats on the Senate inquiry committee compared to three seats held by Labor and the Greens, have issued a dissenting report rejecting many of the recommendations. Labor senator Alex Gallacher chaired the committee, while Greens senator Sarah Hanson-Young was deputy chairman.
The Senate report issued a series of recommendations, including calling for the Immigration Ombudsman to review complaints by Australian-funded staff and contractors and for the Department of Immigration to require drug and alcohol testing for staff working at the centres, including daily random tests. Drug testing is not done on Nauru.
It also suggested that the Department of Immigration and Australian Federal Police do a full audit of all allegations of sexual abuse, child abuse and other criminal conduct and that legislation be passed by the Australian government requiring mandatory reporting of sexual harassment and assault of asylum seekers.
In addition, it recommended that the Legal and Constitutional Affairs References Committee examine whether the contractors are delivering value for money, meeting the terms of their contracts, and providing services that meet Australian standards.
Transfield declined to comment on the Senate report, or how much the new contract would be worth, saying that it was still negotiating the terms and conditions with the government as well as the scope of work.
The company, which is estimated to have earned more than $200 million in income from its existing immigration contracts in 2014-2015, has flagged the possibility of taking investors to Nauru and Manus to show them how it is managing the centres.
