Jack Thrower
Senior Economist

In September, the Senate revealed that the Albanese Government had secretly agreed to pay Nauru up to $2.5 billion to resettle the NZYQ cohort (of about 350 people). This would involve about $400 million up front and up to $70 million annually, depending on how many people resettle there. Media coverage on this deal has highlighted concerns about its secrecy and high cost. These are exacerbated because the government refuses to release any details.

As a refresher, the NZYQ cohort is a group of over 300 people who have had their visa cancelled or been refused a visa but for whom there is “no real prospect of removal from Australia becoming practicable in the reasonably foreseeable future”. This could be because they are stateless, they are refugees or otherwise entitled to protection or there is a practical barrier (such as being physically or mentally unfit). Previously, this cohort was being kept in detention until they could be deported (effectively indefinite detention). In 2023, the High Court ruled that the government simply deciding to hold these people in effectively indefinite detention was unconstitutional, meaning these people would have to be released. As some of these people have committed serious crimes (though have served their sentence and would likely be released if they were citizens), there has been considerable media attention on the group.

This week, there is more concerning news about the Nauru deal. Most of it brought to you by Greens Senator David Shoebridge, who has used the powers and privileges of the Senate to bring some new information to light.

Firstly, there are allegations of Nauruan corruption, as reported in the Sydney Morning Herald:

Nauruan President David Adeang was suspected of money laundering and corruption by Australian authorities three years before he signed a fresh $2.5 billion deal with the Albanese government in exchange for taking in non-citizens Australia cannot detain. 

Adeang and Nauru’s former president, Lionel Aingimea, were implicated in more than $3 million worth of suspicious transactions in nine months, according to warnings from financial intelligence agency AUSTRAC. Many were linked to a company traced to Aingimea’s wife that was subcontracted by an Australian firm running the offshore detention regime.

 Secondly, there are concerns that Nauru may attempt to return this cohort (which includes refugees) to their home countries. As reported in the ABC:

Nauruan President David Adeang says members of the NZYQ cohort, many of whom are refugees, could be returned to their home countries before the 30-year-long agreement with Australia lapses, according to a translation of his comments.