US private prisons operator to be paid $790m to hold 100 people on Nauru in quiet expansion of contract

A sixteenfold increase in the original contract without public notification raises allegations of ‘gross mismanagement’ and a process ‘run out of control’

A US private prisons operator will receive $157m a year to run Australia’s offshore processing regime in Nauru – currently holding just over 100 people – after the government quietly expanded its contract by more than $350m to three-quarters-of-a-billion dollars.

The two-year extension without prior public notification, or scrutiny of the contract, has raised allegations of “gross mismanagement” and a process “run out of control” from parliamentarians and government integrity experts.

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Background

This developing story continues to unfold as more information becomes available. The situation has drawn attention from various stakeholders and continues to be monitored closely.

Analysis

Industry experts suggest that this development could have significant implications moving forward. The broader context of this news reflects ongoing trends in the sector.

What This Means

The implications of this news extend beyond the immediate circumstances. Stakeholders are closely watching how this situation develops and what it might mean for future developments in this area.

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