Canstruct International

Last updated
Canstruct
Company type Multinational
Industry Construction, Facilities management, other services
PredecessorsForce 10
Founded1960s, Australia
FounderRobin Murphy
Headquarters
Brisbane, Queensland
,
Australia
Areas served
Australia, South Pacific Islands, Nauru
Key people
Rory Murphy (CEO), Robin Murphy (founder)
Website canstruct.com.au

Canstruct is a facilities management, construction, and service provision company based in Brisbane, Queensland, Australia, with operations in the Pacific region. [1]

Contents

The company's headquarters is located at 769 Fairfield Rd, Yeerongpilly (a suburb of Brisbane). [2]

Canstruct has three core business divisions: Humanitarian Services; Infrastructure; and Support Services.

As of February 2022, Canstruct is owned by a holding company, Rard No 3. The holding company's directors are Robin Murphy and his three sons, Rory, Adrian and Daniel. [3]

Operations

The company describes their work as "logistics, facilities management, construction and engineering, education and recreation services, community engagement, and disaster and emergency relief". [1]

Robin Murphy is a recipient of the medal of the Order of Australia for "services to the construction industry." [4]

Nauru contract

Canstruct held a AUD $591 million contract from the Australian Government to provide services at Nauru Regional Processing Centre - an Australian immigration detention centre on the pacific island nation of Nauru. [5]

Canstruct had a contract with the Australian Government in Nauru since 2012 with the current contract commencing in October 2017, when Canstruct took over from Broadspectrum on Nauru. [6]

In November 2018 the contract was ending and the company was preparing to hand over control of Nauru Regional Processing Centre to a Nauruan Government commercial entity. Between October 2017 and November 2018 Canstruct made a profit of $43 million running the detention centre. [6]

The contract was granted to Canstruct through a limited tender process with only one bidder - Canstruct itself. The government said this was because other companies declined to bid, and added that Canstruct's experience with managing mining camps made them suitable for managing an immigration detention centre. [5]

By April 2021, the Nauru contract had been amended six times, and Canstruct had been paid a total of AUD $1.4 billion over its course. Although, there had been no new people put into immigration detention on Nauru since 2014. [7]

As of February 2022, the Nauru contract was held by Rard No 3, a holding company that owned Canstruct. The directors of Rard No 3 were Robin Murphy and his three sons Rory, Adrian and Daniel. The Nauru contract was the only significant contract that the company held. [8]

Rard No 3 had $340 million in cash and investments, compared to Canstruct having only $8 million before the Nauru contract was awarded. Rard No 3 made $101 million profit in the previous financial year, about $500,000 per detainee on Nauru (of which there was 115). [9]

It cost Australian taxpayers $12,000 per day - about $4 million per year - for each detainee held on Nauru. [10]

The most recent contract extension was in January 2022, to 22 June 2022, for $218.5 million. There is an option to extend for six months beyond. [11]

Other

In April 2015 Canstruct indicated interest in a contract to Manus Regional Processing Centre on Manus Island, Papua New Guinea. However, they were unsuccessful in their bid. The contract was eventually awarded to Paladin Group in a closed tender (only one bidder allowed) and was worth $423 million. [12]

Prior to being awarded the 2017 contract, Canstruct had been operating on Nauru since 2012, though mostly in construction work rather than welfare and garrison services. [6]

Canstruct's website indicates that they have operated in 31 countries across the Asia-Pacific, Iran, UAE, Seychelles and The Americas. Their first contract was in 1966, to construct bridges in the highlands of Papua New Guinea. [13]

Strategic Indigenous Housing and Infrastructure Program

In 2009 they were involved in the Earth Connect Alliance (60% interest) with a $55 million contract constructing homes for indigenous people. [13] The homes were being constructed in remote parts of Australia's Northern Territory as part of the Government's Strategic Indigenous Housing and Infrastructure Program. In 2010 Canstruct was removed from the contract over concerns they would not build the houses on time, and the government prepared to demolish some partly-built homes. In response, Robin Murphy said "demolishing these houses would be a scandalous waste of taxpayers' money and is a way of covering up mistakes made by SIHIP.". [14] [15] In September 2012 the parties agreed to fully and finally resolve all issues in relation to the project including a payment to the participants.

Oro Bridges

In 2013-2016 they were contracted for $139.5 million to re-construct bridges in Oro Province, Papua New Guinea. [13] which had been previously destroyed by Cyclone Guba. [16]

At time of construction, the Kumusi Bridge was the largest two-lane bridge in Papua New Guinea. At the opening ceremony, Gary Juffa, Governor of Oro Province said: “We have come to know Canstruct. They have been part of our community. Even when they leave, they will still be in our hearts. They have left a footprint that we will remember forever. We want to thank the Australian people. The bridges represent a wonderful gift from Australia.”

Tuberculosis (TB) Ward

In 2017 Canstruct commenced construction of a new tuberculosis (TB) Ward in Papua New Guinea. This project was instigated by the Oro Community Development Project, (OCDP) which is an Australian humanitarian aid organisation. Canstruct provided more than $150,000 of support to undertake completed this project as a gift to the community.

Disaster Relief

On February 8, 2016, the Papua New Guinea Today publication reported Canstruct was assisting in urgent Disaster Relief operations after major flooding tore down several temporary bridges and crossings in the region

Scott Base Redevelopment, Antarctica

In February 2020, Canstruct was the only Australian firm to be shortlisted for the Scott Base research facility redevelopment project (announced on Antarctica New Zealand's website).

Acquisitions

Canstruct's website states that: [13]

Force 10's website states that in May 2017 they were taken over by Stratco (see manufacturing in Australia). [17]

Controversy

Political donations

On October 10, 2017, Rory Murphy paid $3,500 to attend a Liberal National Party dinner event in Australia. This was while Canstruct were negotiating the Nauru contract with the Australian Government. On September 28, the Government had issued a letter of intent to grant Canstruct a small $8 million, 6-month contract to provide garrison services on Nauru. The Liberal National Party was in government at the time (see 2016 Australian federal election). [5]

In November 2018, a further $3000 was donated to the LNP by a company of which Rory Murphy is a director. [5]

Rory Murphy denied that the donations had any impact on the Government's eventual decision to grant Canstruct a $591 million contract. [5]

As of February 2022, Canstruct had made 11 political donations to the Liberal National Party in Queensland. The lucrative Nauru detention centre management contract had been extended at least until June 2022. [18]

Criticism

When Canstruct was about to take up the Nauru contract in 2017, it was criticised by the Human Rights Law Centre, Amnesty International and GetUp!. HRLC (an Australian human rights advocacy group) said Canstruct was taking up a "poisoned chalice" and that it would be "complicit" in an "internationally abusive system", that there was no ethical way for it to be involved. Amnesty International's director for global issues, Audrey Gaughran, said “The company will provide the very services that sustain a system that keeps women, men and children trapped in a cycle of cruelty and desperation,”. GetUp! (an Australian left wing lobby group) said that abuse, including child abuse, had been reported on Nauru and that Canstruct would be responsible for doing business in abuse. [19]

Keren Adams from the HRLC said “It is particularly appalling that the contract has been awarded to an engineering company with zero experience dealing with vulnerable people [...] Canstruct is an engineering company with a background building bridges. In accepting this contract, it will be taking the job of running a cruel, open-air prison detaining people, including many children, who are deeply traumatised.”. [20]

As of early 2019, Canstruct had transitioned all residents out of the Regional Processing Centres on Nauru into the community. No children remain in detention on Nauru.

In early 2019, ABC News reported that the Australian Government confirmed all asylum seeker children have either been removed from Nauru or are about to leave the island. [21]

Related Research Articles

<span class="mw-page-title-main">Economy of Nauru</span>

The economy of Nauru is tiny, based on a population in 2019 of only 11,550 people. The economy has historically been based on phosphate mining. With primary phosphate reserves exhausted by the end of the 2010s, Nauru has sought to diversify its sources of income. In 2020, Nauru's main sources of income were the sale of fishing rights in Nauru's territorial waters, and revenue from the Regional Processing Centre.

A private prison, or for-profit prison, is a place where people are imprisoned by a third party that is contracted by a government agency. Private prison companies typically enter into contractual agreements with governments that commit prisoners and then pay a per diem or monthly rate, either for each prisoner in the facility, or for each place available, whether occupied or not. Such contracts may be for the operation only of a facility, or for design, construction and operation.

<span class="mw-page-title-main">Pacific Solution</span> Australian asylum policy from 2001

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<span class="mw-page-title-main">Australian immigration detention facilities</span> Facilities used to detain people under Australias policy of mandatory immigration detention

Australian immigration detention facilities comprise a number of different facilities throughout Australia, including the Australian territory of Christmas Island. Such facilities also exist in Papua New Guinea and Nauru, namely the Nauru Regional Processing Centre and the Manus Regional Processing Centre.

<span class="mw-page-title-main">Nauru Regional Processing Centre</span> Offshore Australian immigration detention facility

The Nauru Regional Processing Centre is an offshore Australian immigration detention facility in use from 2001 to 2008, from 2012 to 2019, and from September 2021. It is located on the South Pacific island nation of Nauru and run by the Government of Nauru. The use of immigration detention facilities is part of a policy of mandatory detention in Australia.

<span class="mw-page-title-main">Lorengau</span> Lorengau Town in Manus, Papua New Guinea

Lorengau is the major town in Manus Province, Papua New Guinea. The town is located on the edge of Seeadler Harbour on Manus Island, in the Admiralty Islands, and in 2000 Lorengau was recorded to have a population of 5,829.

<span class="mw-page-title-main">Broadspectrum</span> Australian infrastructure maintenance services company

Broadspectrum, formerly known as Transfield Services, was an Australian and New Zealand company that provided infrastructure maintenance services. Formerly listed on the Australian Securities Exchange, and later owned by Ferrovial, it was then acquired by Ventia who integrated Broadspectrum alongside Visionstream.

<span class="mw-page-title-main">GEO Group</span> American institutional facilities company

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<span class="mw-page-title-main">Immigration detention in Australia</span>

The Australian government has a policy and practice of detaining in immigration detention facilities non-citizens not holding a valid visa, suspected of visa violations, illegal entry or unauthorised arrival, and those subject to deportation and removal in immigration detention until a decision is made by the immigration authorities to grant a visa and release them into the community, or to repatriate them to their country of origin/passport. Persons in immigration detention may at any time opt to voluntarily leave Australia for their country of origin, or they may be deported or given a bridging or temporary visa. In 1992, Australia adopted a mandatory detention policy obliging the government to detain all persons entering or being in the country without a valid visa, while their claim to remain in Australia is processed and security and health checks undertaken. Also, at the same time, the law was changed to permit indefinite detention, from the previous limit of 273 days. The policy was instituted by the Keating government in 1992, and was varied by the subsequent Howard, Rudd, Gillard, Abbott, Turnbull, Morrison and Albanese Governments. The policy is regarded as controversial and has been criticised by a number of organisations. In 2004, the High Court of Australia confirmed the constitutionality of indefinite mandatory detention of non-citizens. However, this interpretation was overturned in a landmark decision, NZYQ v Minister for Immigration, in 2023, with the High Court concluding the practice was unlawful and unconstitutional.

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<span class="mw-page-title-main">Education in Nauru</span>

Education in Nauru is compulsory for children between the ages of 5 and 16. There are eleven schools in Nauru, including three primary schools and two secondary schools. There is an Able/Disable Centre for children with special needs. Education at these schools is free. In 2011, the Australian Department of Foreign Affairs and Trade reported that 3,026 children were enrolled at Nauru's schools. The previous Minister for Education was the Hon. Charmaine Scotty, MP from 2013. The current Minister is Asterio Appi.

<span class="mw-page-title-main">Manus Regional Processing Centre</span> An offshore Australian immigration detention facility

The Manus Regional Processing Centre, or Manus Island Regional Processing Centre (MIRCP), was one of a number of offshore Australian immigration detention facilities. The centre was located on the PNG Navy Base Lombrum on Los Negros Island in Manus Province, Papua New Guinea.

International Health and Medical Services (IHMS) provides primary and mental health care services within the Australian immigration detention network under a contract with the Department of Immigration and Border Protection. It is a subsidiary of International SOS.

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<span class="mw-page-title-main">Human Rights Law Centre</span> Australian human rights group

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<span class="mw-page-title-main">Ads Up Canada</span> Canadian refugee support organization

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References

  1. 1 2 "Canstruct - Main page". canstruct.com.au. Archived from the original on 2023-03-24. Retrieved May 12, 2019.
  2. ↑ "Canstruct - Contact us". canstruct.com.au. Archived from the original on 2023-03-24. Retrieved May 12, 2019.
  3. ↑ Ben Doherty; Ben Butler (12 February 2022). "Nauru detention centre operator makes $101m profit – at least $500,000 for each detainee". The Guardian. Retrieved 12 February 2022.
  4. ↑ Kieran Banks (1 March 2015). "Canstruct founder Robin Murphy awarded OAM for 50 years service to the construction industry". The Courtier Mail. Retrieved 12 February 2022.
  5. 1 2 3 4 5 Paul Karp (May 12, 2019). "Canstruct chief executive denies link between LNP donation and $591m Nauru contract". The Guardian . Retrieved May 12, 2019.
  6. 1 2 3 Helen Davidson (November 15, 2018). "Brisbane construction firm Canstruct made $43m profit running Nauru detention centre last year". The Guardian . Retrieved May 12, 2019.
  7. ↑ Ben Doherty (10 April 2021). "Brisbane company paid $1.4bn to run offshore processing on Nauru despite no arrivals since 2014". The Guardian. Retrieved 17 December 2021.
  8. ↑ Ben Doherty; Ben Butler (12 February 2022). "Nauru detention centre operator makes $101m profit – at least $500,000 for each detainee". The Guardian. Retrieved 12 February 2022.
  9. ↑ Ben Doherty; Ben Butler (12 February 2022). "Nauru detention centre operator makes $101m profit – at least $500,000 for each detainee". The Guardian. Retrieved 12 February 2022.
  10. ↑ Ben Doherty; Ben Butler (12 February 2022). "Nauru detention centre operator makes $101m profit – at least $500,000 for each detainee". The Guardian. Retrieved 12 February 2022.
  11. ↑ Ben Doherty; Ben Butler (12 February 2022). "Nauru detention centre operator makes $101m profit – at least $500,000 for each detainee". The Guardian. Retrieved 12 February 2022.
  12. ↑ Lisa Murray; Angus Grigg; Jonathon Shapiro (3 April 2019). "Home Affairs removed Paladin boss over 'non-compliance'". Australian Financial Review . Retrieved May 12, 2019.
  13. 1 2 3 4 "Canstruct - Our experience". canstruct.com.au. Retrieved May 12, 2019.
  14. ↑ Natasha Robinson (June 22, 2010). "Builders claim 'waste of money' in Northern Territory". The Australian . Retrieved May 14, 2019.
  15. ↑ Alison Middleton (June 23, 2010). "Sacked building firm slams bureaucratic delays". Australian Broadcasting Corporation . Retrieved May 14, 2019.
  16. ↑ "Oro Bridges Opened". EMTV. July 18, 2016. Retrieved May 14, 2019.
  17. ↑ "Force 10 has been purchased by Stratco". force10global.com.au. Retrieved May 14, 2019.
  18. ↑ Ben Doherty; Ben Butler (12 February 2022). "Nauru detention centre operator makes $101m profit – at least $500,000 for each detainee". The Guardian. Retrieved 12 February 2022.
  19. ↑ Helen Davidson (October 19, 2017). "Civil engineering firm Canstruct to take over operating Nauru detention centre". The Guardian . Retrieved May 12, 2019.
  20. ↑ Stefan Armbruster (October 20, 2017). "Human rights groups have accused an engineering firm with no experience in refugee services of profiting from the abuse of asylum seekers". SBS Australia . Retrieved May 14, 2019.
  21. ↑ "Last remaining asylum seeker children to be removed from Nauru". ABC News. 2 February 2019.


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