Australia opens investigations into Manus contracts

7:23 am on 2 April 2019

Australia's auditor-general will investigate a contract worth nearly $US60 million awarded to a Papua New Guinea company for services on Manus Island.

Manus Island refugees protest at West Lorengau Haus.

Asylum seekers on Manus Photo: supplied

It comes after the Sydney Morning Herald reported the politically connected NKW Holdings was suspected of inflating invoices to turn profits.

The Auditor-General, Grant Hehir, will investigate the Australian government contract NKW was given to feed and house refugees on Manus.

In a letter on Monday obtained by the Australian Financial Review, he said he would also investigate $US300 million in contracts awarded to another Manus island service providerPaladin.

Get the RNZ app

for ad-free news and current affairs