Chinese Defence contractor accused of underpaying staff, denies national security concerns

By AR Williams, Canberra correspondent

Hong Kong -owned Wilson Security, a Defence contractor has been accused of underpaying employees while 1320 complaints have been made against the company since 2014.

In 2024 the Australian Financial Review raised national security concerns about the Chinese-owned company, which Defence Minister Richard Marles moved to dispel.

Wilson Security has won current federal government contracts with Defence, The Australian Tax Office and the Department of Prime Minister and Cabinet.

The Fair Work Ombudsman has confirmed it has dealt with155 RfAs disputes which detail the crucial steps for attempting to resolve disagreements cooperatively through the meet and confer process and discovery deficiency letters.

The total number of workers identified as affected by underpayment or Award breaches is 72 yet only seven investigations have been launched resulting in one compliance notice being issued with zero number of infringement notices and zero enforceable undertakings and other tools issued.

While the AFP is responsible for personal protection, Wilson Security currently holds separate government contracts for other security services, including: 

• Providing general security guard services for the Department of the Prime Minister and Cabinet’s facilities, a contract running from July 2021 to June 2026.
• Wilson Security provides security guards for defence sites at the Department of Defence headquarters in Canberra, HMAS Stirling naval base in Western Australia, RAAF Base Tindal, and Australian Army Robertson Barracks in the Northern Territory, among other defence locations.

Wilson Security’s involvement with the Australian Government goes back to at least July 2012 when two billionaire brothers, Thomas and Raymond Kwok, directors of the company, were charged with bribing a Hong Kong government official in a case that shook the Hong Kong establishment.

Soon after their arrest, the leaked documents, obtained by the ABC’s Four Corners, show the brothers covertly remained directors of the offshore company that ultimately controls Wilson’s operations in Australia — Wilson Offshore Group Holdings (BVI) Limited.

According to the ABC report, leaked documents have revealed that the two brothers, as directors of the company, were ultimately in control of an Australian security company that earned roughly half a billion dollars in lucrative government contracts.

A whistleblower and former employee of Wilson Security has told Cairns News he was able to get data from an FOI request to the Fair Work Ombudsman:

Total Number Description
155 Total number of RfAs/Disputes
1320 Total number of Enquiries
7 Total number of investigations commenced
72 Total number of workers identified as affected by underpayment or Award breaches
1 Total number of compliance notices issued
0 Total number of infringement notices issued
0 Total number of enforceable undertakings and other tools issued

“The chart that I received proves that FWO investigates few Wilson Security complaints but the chart is specifically for Western Australia,” the whistleblower said.

“Wilson Security was consulted as a third party and did not challenge the release. The pattern suggests persistent complaints and Award issues with minimal or no regulatory escalation, despite the company holding major government contracts including the defence sites where guards receive the highest ID credentials and are underpaid at a Level 2 site Award but I can guarantee that there would be systemic underpayment of wages and I am certain that I can prove that.

“The company deserves higher scrutiny and further exposure. I worked for them on two occasions – both nightmarish experiences and have fallen into financial hardship twice. Unfortunately, the company is too big to tackle as a little person.”

The Minister for Defence said the Australian Defence Force has been provided assurances by the subsidiary of Hong Kong-owned Wilson Group (according to the 2016 Panama Papers), and processes are in place to maintain secrecy of Defence projects protected by the company – in response to concerns originally raised by The Australian Financial Review.

“Wilson has been providing security to Australian Defence Force bases for many, many years across numerous governments,” Deputy Prime Minister Richard Marles said during a press conference in Canberra in 2024.

“I’m confident about the processes that we have in place around providing assurance for those who contract with Defence and for those who contract with Defence in relation to base security.”

According to a Defence Connect report in 2024 concerns stemmed from legal frameworks available for intelligence agencies located in the People’s Republic of China which could attempt to use the company to obtain information.

Under Chinese state security legislation, any organisation or citizen shall support, assist, and cooperate with PRC state intelligence work in accordance with the law. Additionally, relevant organisations and individuals shall provide it truthfully and may not refuse.

Wilson Security has been an approved member of the Defence Industry Security Program for more than 15 years and the company was announced as the Defence Base Services Contractor of the Year Award winner for 2023, late last year.

The recognition came as part of the annual Base Services Contractor Council hosted by the Security Estate Group at HMAS Cerberus, with the award acknowledging the contractor for efforts and commitment to continuous improvement, innovation, value to Defence, and customer engagement.

Speaking on the award in 2023, Wilson Security chief executive officer Nick Frangoulis said the company remains committed to delivering outstanding service, upholding the highest accountability standards, and fostering a culture of respect, integrity, and trust.

“This award is tremendous recognition for our 1,000-plus Defence base security team,” he said.