Questions over offshore detention contracts with Nauru
Hundreds of thousands of Australian taxpayer dollars in exchange for offshore detention have found their way to a Nauruan company with links to current and former presidents of the Pacific nation.
A government contractor poured at least $761,000 into the parent company of a business linked to Nauru’s president David Adeang, his predecessor and the country’s former first lady.
The immigration deal came to light when an unpublished report by Australia’s financial crimes watchdog entered the public record. Greens senator David Shoebridge read sections of the AUSTRAC report on Hansard in late 2025.
Official figures reveal new information about government funding flowing to a business linked to Mr Adeang.
Under the offshore immigration programme, a private company called MTC Australia was paid to provide accommodation, maintenance and security on Nauru.
Water distribution services were given to a company called Chazaq Corporation Limited.
Chazaq owns another business, LRC Car Rental, which is linked to Mr Adeang and the former president’s wife.
Senator Shoebridge put questions to the Home Office about the offshore immigration agreement.
“As at 31 October 2025, the total value of payments to MTC Australia for the Chazaq subcontract was $761,370,” the department said in its response.
MTC Australia has been contacted for comment. So is the Nauruan High Commission and Home Affairs Minister Tony Burke.
In November 2025, Senator Shoebridge used parliamentary privilege to accuse Nauru’s president of siphoning off millions of dollars of Australian taxpayers’ money.
He told the Senate that AUSTRAC had raised suspicions of corruption and money laundering against Mr Adeang based on the rapid movement of large sums of money from LRC Car Rental.
Senator Shoebridge told the federal parliament that the report, prepared some time before September 2022, also included the names of former president Lionel Aingimea and his wife Jacinta.
Following a series of revelations about offshore detention contracts, the government ordered an independent review of the immigration system.
In response, it agreed to improve subcontractor approval processes and strengthen due diligence for providers.
Officials from Home Affairs and MTC Australia are expected to face a debate on the issue at a parliamentary hearing on Tuesday.
The inquiry will be the first time a Senate committee has examined the secret deportation agreement between Australia and Nauru.
The deal includes Australia paying $400 million in upfront costs and $70 million annually to send former immigration detainees to Nauru.
Submitted to a Senate inquiry, the Department of Home Affairs said the agreement with Nauru was in line with Australia’s international obligations, including the protection of refugees.
