The Paladin Affair was a 2019 controversy involving a $423 million Australian government contract awarded to Paladin Group, a little-known security company, to provide garrison and welfare services for asylum seekers on Manus Island (Papua New Guinea). The contract was issued under Peter Dutton, then-Home Affairs Minister, through a limited tender process, bypassing open competition.

Paladin had minimal experience in large-scale operations and was registered to a modest beach shack on Kangaroo Island, raising concerns about its capacity. Despite this, the company received the lucrative contract, initially valued at $89 million, before ballooning to $423 million in extensions.

Critics, including auditors and opposition politicians, questioned:

• Why Paladin was chosen despite its lack of track record.

• The lack of transparency in the tender process.

• Potential connections between Paladin executives and Peter Dutton and other government officials.

The government defended the decision, citing urgent operational needs and claiming no other firms could meet the requirements. However, reports later revealed financial irregularities, including Paladin subcontracting work to other firms at inflated costs.

The scandal fueled debates over:

• Offshore detention spending and accountability.

• Procurement practices in government contracts.

• Potential conflicts of interest in ministerial decisions.

While no illegal conduct was proven, the affair damaged public trust and led to calls for greater transparency in government contracting. Paladin’s contract ended in 2020, but the controversy remains a notable example of Peter Dutton’s contentious procurement decisions in Australia’s immigration policy.