Home Affairs Statement Over The Paladin Fiasco That Is Biting Hard


Paladin Holdings PTE Ltd - Contract for services on behalf of PNG ICA
Paladin Group is a global company which has delivered security and related services to a broad range of government and private sector clients across the Asia-Pacific region since 2007. It has been operating in Papua New Guinea (PNG) since 2009 via its PNG entity, Paladin Solutions PNG Ltd.

Paladin Holdings PTE Ltd registered in Singapore, is the parent company of Paladin Solutions PNG Ltd (registered in PNG).

On 21 September 2017 Paladin Solutions PNG Ltd was engaged under Letters of Intent valued at $89,243,817.76 (AusTender). This allowed the commencement of transition activities and continuity of service delivery to support the closure of the Manus Regional Processing Centre by 31 October 2017, and allowed for contract negotiations.

On 28 February 2018, the Department signed the initial PNG Services Contract (the Contract) with Paladin Holdings PTE Ltd valued at $176,876,834.40 for Garrison and Security Services at the East Lorengau Refugee Transit Centre, as well as services at other sites including Hillside Haus, West Lorengau Haus and in Port Moresby, PNG.

On 17 September 2018, the Contract was extended to 31 December 2018.

On 3 December 2018, the Contract was extended to 30 June 2019.

The Contract for the period from 28 February 2018 to 30 June 2019 is valued at $333,546,146.40 (AusTender).

The procurement of Paladin Solutions PNG Ltd/Paladin Holdings PTE Ltd was conducted under the Special Measures procurement designated in accordance with paragraph 2.6 of the Commonwealth Procurement Rules.

In applying this Special Measure key factors were taken into consideration including: the urgency of ongoing services to support PNG Immigration and Citizenship Authority and the US Resettlement process and other service providers including Pacific International Hospital, Port Moresby; the limited number of potential suppliers (based on previous attempts to procure similar services); and the remote operating environment.

The procurement complied with other requirements under Division 1, in particular Value for Money, Records, Efficient, effective, economical and ethical procurement, and Procurement Risk. This procurement also complied with the Department’s High Risk, High Value governance process, which includes additional governance oversight such as Deputy Secretary or Deputy Commissioner financial approval, and clearance of key documents at senior executive level.

External probity advisors, external legal advisors from AGS, and commercial and financial advisors were also engaged during the procurement process.

The Department administers a strict contractual Performance Management Framework to ensure that Paladin Holdings PTE Ltd is accountable and delivers services to refugees and non-refugees as per the contractual requirements. This includes monitoring Paladin’s performance and undertaking a User Acceptance Testing process of Paladin Holdings PTE Ltd to ensure their contractual compliance.

A copy of the Paladin Holdings PTE Ltd PNG Services Contract (7MB PDF) (which only removed commercial in confidence information) was made publically available on the Department’s FOI disclosure log on 16 August 2018.

Reply · Report Post