Back
World News

Papua New Guinea Hotel Pursues Australian Government for $11 Million in Unpaid Refugee Accommodation Costs

View source

Hotel Seeks $11 Million from Australia Over Refugee Accommodation

A hotel in Papua New Guinea is seeking approximately $11 million from the Australian government for unpaid accommodation costs related to refugees previously held under Australia's offshore processing policy. The case, heard in the National Court of Papua New Guinea, centers on a dispute over financial responsibility following the transfer of management for the refugees to the PNG government in 2021.

Legal Proceedings

On Wednesday, April 17, 2024, Justice Pauline Bre of the National Court of Papua New Guinea adjourned an application to formally add the Commonwealth of Australia and the Australian Department of Home Affairs as defendants in the case.

The hotel, Lodge 10 in Port Moresby, had initially filed a civil case against the PNG immigration department. The department argued that Australia was responsible for the payments, leading to the hotel's application to add the Australian government to the case.

The Australian High Commissioner was served the application on March 17, 2024. Australian government lawyers did not attend the court hearing.

Justice Bre stated it was appropriate for the Australian government to have legal representation in the matter and suggested the issue might be resolved through mediation.

Background of the Agreement

According to the hotel owner, Mose Kopyoto, an agreement was made with Australian Border Force officials in 2017. The agreement was for Lodge 10 to accommodate refugees who were being moved from the Manus Island regional processing centre to Port Moresby.

Mr. Kopyoto stated that the Australian government paid the hotel directly for the first few years of this arrangement.

In 2021, Australia announced it was ending its offshore processing arrangements in Papua New Guinea and transferring responsibility for the remaining refugees to the PNG government. Mr. Kopyoto claims direct payments from Australia stopped at that time, though refugees have continued to reside at the hotel.

Statements from Involved Parties

  • Mose Kopyoto, Hotel Owner: "It's really painful. It's really unfair. This can't operate like that. We can't operate."
  • Ralph Saulep, Lawyer for Lodge 10: "A large sum of money has been released or was released by Australia and given to Papua New Guinea. I would suggest to Australian taxpayers that they ought to be asking themselves what Papua New Guinea has done with the money."
  • Australian Department of Home Affairs Spokesperson: "The PNG government assumed full and independent management of individuals remaining in PNG in January 2022. The Australian government does not have any role in the ongoing management of, or service delivery arrangements for, individuals remaining in PNG."
  • Senator David Shoebridge (Australian Greens): "I'm hoping that the PNG courts now will force some transparency and force Australia to accept the responsibility they've always had." Senator Shoebridge also stated he has repeatedly asked the Australian government how much money has been provided to PNG for refugee management.

Broader Context and Related Issues

The legal case follows allegations in 2023 about the misuse of Australian refugee funding in Papua New Guinea. These allegations prompted the PNG government to announce a forensic investigation. The findings of that investigation have not been made public.

The exact amount of money Australia has provided to the PNG government for refugee management since the transfer of responsibility has not been publicly disclosed.

Some refugees residing at Lodge 10 have reported that their medical coverage has been terminated and they cannot afford treatment for serious medical issues. A doctor's report from February 2024 cited one refugee as suffering medical and psychiatric disorders, with proper support stated as not being available in PNG.