The Greens are demanding Wilson Security be barred from re-bidding for work at the Nauru immigration detention centre, after claims one of its senators was subject to systematic spying.
An unnamed whistleblower alleges Sarah Hanson-Young had her every move tracked by a team of eight Wilson guards while visiting the island in 2013, a claim at odds with evidence the company has given to a Senate inquiry.
The former guard told ABC TV that management had ordered his colleagues to shred pages in their notepads and any reports they had written.
Greens leader Richard Di Natale has urged the Australian Federal Police to investigate the claims, despite the incident occurring outside its jurisdiction.
"Can you imagine if a member of the government or opposition was spied on in the same way," he told reporters in Canberra on Friday.
"Heads would roll."
Senator Di Natale also called for Immigration Minister Peter Dutton to apologise to Senator Hanson-Young for initially ridiculing her complaint.
"Unless there is a full independent police investigation of this matter, then the minister needs to consider his position," Senator Di Natale said.
Wilson Security apologised to the senator during a hearing of the inquiry, insisting the spying was limited to the unauthorised actions of a rogue individual.
Senator Di Natale accused the company of giving misleading evidence, possibly putting it in contempt of parliament.
"We can't have this lawless government contractor responsible for the security of innocent people," he said.
Senator Hanson-Young is seeking legal advice about the incident.
Labor immigration spokesman Richard Marles said he would have been deeply concerned if there was surveillance of his visits to Nauru.
"If there has been surveillance in relation to Sarah Hanson-Young that is a disgrace," he told Sky News.
Mr Marles said Mr Dutton had questions to answer about whether the spying was authorised by the government.
Wilson Security categorically rejected the claims made by the whistleblower.
"These anonymous allegations are untrue and we stand by our sworn testimony given to the Senate inquiry," the company said in a statement.
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