AUDITOR-GENERAL RELEASES DAMNING REPORT ON DEFENCE INDUSTRY SECURITY

13 September 2021

BRENDAN O'CONNOR MP

SHADOW MINISTER FOR DEFENCE

MEMBER FOR GORTON

 

MATT KEOGH MP

SHADOW MINISTER FOR DEFENCE INDUSTRY

SHADOW MINISTER ASSISTING FOR SMALL BUSINESS

AUDITOR-GENERAL RELEASES DAMNING REPORT ON DEFENCE INDUSTRY SECURITY

The Auditor-General has today released a damning report on the Defence Industry Security Program (DISP), finding Defence is not effectively managing compliance as it struggles to keep up with applications.

Defence had over 16,500 active contracts with a total commitment of more than $202 billion.

There are 237 entities working with Defence without a current security clearance.

This includes 153 in the highest priority area, those working on current operations.

The report found that Defence does not know which of these contracts should, or do, require the contracted entity to have DISP membership. For those that do require a DISP membership, the report found Defence has not been processing DISP applications in a timely manner.

This report raises serious concerns about the oversight of the DISP program, as it found Defence has not established fit for purpose arrangements to monitor compliance with contracted DISP requirements and Defence has not established effective arrangements to manage identified noncompliance.

It is not clear whether Defence has taken appropriate action in response to identified non-compliance with its security policy.

Labor has concerns that this lack of oversight from the Government is causing a security risk for Defence.

We know from speaking to Defence industry that there are concerns about the processing timeframes and the impact it is having on their ability to fulfil contracts.

This is another example of all photo op, no follow up, where we have Minister Price announcing a new system that has failed to deliver.

The Morrison-Joyce Government needs to address these issues, and ensure DISP is safe, secure and timely.