Group 4 and ACM: independent companies

Letter to the Editor - The Australian
29 August 2003

Dear Sir/Madam

Sophie Morris' article, 'Laughing stock to take over centres' (Thursday 28 August), requires clarification.

The contract recently signed with Group 4 for the management of facilities and services at immigration detention centres around Australia ensures that the Commonwealth continues to get best value for money and has nothing to do with perceived criticisms levelled at ACM.

Ms Morris' statement regarding the connection between Group 4 and the Wackenhut Corporation is out of date. While it is accurate that Group 4 purchased the Wackenhut Corporation in May 2002, Group 4 announced before the acquisition had been completed that it proposed to sell its share in the Wackenhut Corrections Corporation (WCC). Australasian Correctional Management (ACM) is a wholly owned Australian subsidiary of WCC.

The sale of Group 4's shares in WCC was finalised in June 2003. This sale was well publicised in the media at the time. The Australian entities of Group 4 and ACM have continued to operate and compete as two entirely independent companies.

Also, the Australian and British arms of Group 4 have entirely different management structures and neither has managerial input into the other's operations.

Kym Charlton
Acting Director
Public Affairs
DIMIA