Despite allegations of ‘gross misconduct,’ a private company pivotal in Trump’s ICE crackdown has now landed a lucrative Australian contract

A major United States private prison company, Management and Training Corporation (MTC), has secured a massive $2.3 billion contract from the Australian government to operate its onshore detention facilities. MTC, which operates through its local subsidiary Secure Journeys Pty Ltd, won the massive contract on top of the lucrative deal MTC already holds to run offshore processing facilities on Nauru. 

That Nauru contract was quietly expanded last year, resulting in the government paying $790 million to house just 100 people. This is a stunning development given the growing scrutiny over MTC’s history in the US.

The Guardian reported that MTC is one of a small group of private prison operators running detention facilities for Immigration and Customs Enforcement (ICE). These facilities hold thousands of detainees caught up in the agency’s mass arrest campaigns. Specifically, MTC manages detainees at several high-profile locations near the Mexican border, specifically in Texas, New Mexico and California.

It just isn’t about detention, but insane reports about negligence

MTC’s track record in the US is extremely troubling. The state of Mississippi accused MTC of engaging in “a conspiracy scheme” involving fraud, money laundering, and kickbacks, alleging the company paid bribes to state officials in exchange for contracts. Beyond those systemic issues, MTC has faced allegations of “gross negligence” and “egregious” security failures within its facilities, specifically complaints about its treatment of ICE detainees. 

Advocates have reported allegations of assault at the Bluebonnet facility, severe overcrowding at both IAH Polk and Otero, and the punitive use of solitary confinement at Otero. Tragically, a detainee also died at the Imperial facility in September. It isn’t surprising considering that the department it works with isn’t concerned about people’s rights. ICE’s continued actions have already caused a representative to regret voting to pass a funding bill.

Eunice Cho, a senior counsel with the National Prison Project, weighed in on the controversy, stating that MTC’s history is a massive red flag. She said, “The track record of private prison corporations like MTC, who uniquely profit from human suffering, including the recent crackdown on immigrant communities in the United States, speaks for itself,” adding, “It should raise serious questions for any government entity considering a contract.”

Unsurprisingly, local advocates and politicians are demanding action. Jana Favero, deputy chief executive of the Asylum Seeker Resource Centre, and Greens Senator David Shoebridge have demanded that Australia review their contracts. Shoebridge stated that no company that “profits globally from immigration crackdowns and mass detention should be entrusted with the care of vulnerable people in Australian government custody.”