The Australian company providing welfare and garrison services to refugees detained on Nauru has had its contract extended for three months.
Canstruct was due to end its $US300 million dollar contract on Tuesday, with a Nauru company taking over services for about 400 refugees detained on the island without trial since 2013.
The Republic of Nauru Photo: AFP
But the Guardian reports the Australian government extended the contract because it believed the Nauru company was not ready to take over.
Nauru wants to replace Canstruct with Eigigu Solutions Holdings, a company linked to the Nauruan government.
It's reported that Nauru only agreed to the extension at the 11th hour, following confusion among refugees who were told to vacate one of the detention centres and warned their healthcare would stop.
The contract of another company, Host, which provides casework and employment services to refugees, is due to end next week, when Eigigu Solutions Holdings is expected to take over.
A view of a dwelling at refugee Camp Four on the Pacific island of Nauru. Photo: AFP or licensors