The Federal Government has awarded a $2.3 billion detention contract to the Australian arm of a company linked to controversy in the US.

The contract to manage onshore immigration detention facilities has gone to Secure Journeys, a local subsidiary of the international private prison operator Management & Training Corporation (MTC). 

The decision marks the end of a 15-year agreement with British firm Serco.

Secure Journeys will assume control from early 2025, on a contract spanning five years. 

The announcement follows allegations of misconduct surrounding MTC’s operations in the United States and offshore detention on Nauru.  

MTC’s history includes allegations of “gross negligence” and security lapses, such as incidents that reportedly resulted in the sexual assault of a detainee and the murder of multiple people by escaped prisoners.

In a separate civil case, the company was accused of wrongfully detaining a US citizen in solitary confinement for 14 months. 

MTC settled these cases, and claims it has upheld “the highest standards of service”.  

In Australia, the company says it operates on the ‘BIONIC’ philosophy: “Believe It Or Not, I Care”. 

“MTC Australia delivers safe, decent and secure services, with a focus on welfare and rehabilitation,” said Troy Ittensohn, Managing Director of MTC Australia.

Serco, which previously managed the detention centres, faced consistent criticism over claims of understaffing and harsh conditions, including allegations of self-harm and inadequate medical care for detainees. 

The company confirmed losing the contract, estimating an £18 million (AU$35 million) loss in operating profit for 2025. 

“We will now work to ensure a smooth transition of these critical services to the new provider,” a Serco spokesperson said. 

The Justice and Equity Centre has criticised the state of the Australian detention system, urging systemic reform. 

“Serco has made large profits while contributing to Australia’s failure to uphold its duty of care... We are pleased Serco will no longer profit, but the suffering will continue without sweeping reform,” said Grace Gooley, a senior solicitor.

As of October 2024, 989 individuals remain in Australian immigration detention. 

Human rights advocates have called on the government to ensure the new operator avoids replicating past failings.  

Despite its controversial history, MTC claims the Australian contract builds on its global portfolio, including management of Parklea Correctional Centre in Sydney and offshore facilities in Nauru. 

The government has emphasised the importance of a seamless transition and maintaining detainee welfare under the new arrangement.  

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