Our tax dollars ladies & gentleman!
A Brisbane construction company had $8 in assets and had not commenced trading, when it was awarded a government contract – ultimately worth $1.6bn – to run Australia’s offshore processing on Nauru.
The contract was awarded after the government ordered a “financial strength assessment” that was actually done on a different company.
Canstruct International Pty Ltd had eight $1 shares in assets in 2017, company filings show, when the department of home affairs asked accountants KPMG to assess it for its ability to “provide garrison and welfare services” for more than 1000 refugees and asylum seekers on Nauru.
Since then the contract – originally worth $385m – has been amended seven times without competitive tender. The contract now totals $1.6bn.