Australia to pay controversial US prisons operator $4.6m for 52 days of transition work on Nauru

MTC, which has been accused of ‘gross negligence’ that allegedly led to gang rape, will be paid during same period as previous contractor Canstruct

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The Australian government will pay $4.6m to a controversial US private prisons operator for 52 days of preparatory work ahead of its expected takeover of the offshore processing regime on Nauru, despite a range of serious allegations made against the company abroad.

The US-based Management and Training Corporation (MTC) has been accused in civil suits of “gross negligence” and “egregious” security failures that allegedly led to the gang-rape of a woman in detention, the murder of two retirees by escaped prisoners, and the months-long solitary confinement of a US citizen wrongfully held in immigration detention. It has also paid a multi-million dollar fine over a government bribery scandal.

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