The Kiwi crime bosses had better be on their guard

BY BRITTON BROUN

Politicians say New Zealand's criminal underworld is a lot more complex and sophisticated than it was three decades ago, but deep down Malcolm Burgess sees little difference.

Before the advent of pure methamphetamine, or P, he spent years on the Auckland drug squad in the 1980s, battling to catch big heroin and cannabis dealers.

"Back then people used to import illegal commodities and sell them for a lot more than they bought them for. It hasn't changed a hell of a lot.

"They're able to do it a bit differently but essentially it's the same business."

Mr Burgess, 52, has been appointed the first director of the Organised and Financial Crime Agency (Ofcanz) – the country's first inter-agency squad dedicated solely to bringing down the heads of organised crime.

Methamphetamine has become a billion-dollar industry in New Zealand. Police Commissioner Howard Broad and Police Minister Judith Collins envisage a future in which officers and politicians could be bribed and corrupted by powerful criminals unless steps are taken.

The agency, established last year, has a core of only about 30 police officers but their first task in October – a series of early-morning raids on Tribesmen gang members in Auckland and Northland – involved more than 100 people, from police to Customs, the Fisheries Ministry, Corrections, Social Development Ministry and the Serious Fraud Office.

As a result, up to 14 people face 160 meth-related charges, dealing a hefty blow to organised crime.

Mr Burgess says this new approach is necessary when criminal groups are putting aside their "wars" and working closer together in the name of profit. Technology has made their communications easier while money can be whisked around financial systems in the blink of an eye.

He regards his intended targets as entrepreneurs who deal in drugs but may also have a hand in the multimillion-dollar paua-poaching trade, or the smuggling of native animals or eggs and even people.

"In my experience, criminals don't limit themselves to one particular commodity. Generally they're into anything that turns a quick buck.

"P's a foul drug that causes significant harm to people and communities but it's still just a commodity. That's why we're about targeting the people who traffic in these things."

Though agencies like police and Customs have successfully worked together for decades on criminal investigations, the pressures to get quick results can lead to distraction. Months of work investigating a crime boss can be wiped out when they have to devote all their energies to busting an upcoming drug importation.

The agency is beyond the churn of day-to-day policing, which gives its members time to focus on the big fish.

Working with the police's National Intelligence Centre, formed in December, they sit down with other government departments before an investigation starts to consolidate information and improve effectiveness. They will work closely with the police's fledgling Asset Recovery Unit – which specialises in recovering expensive assets like boats, motorcycles, houses and farms, paid for by crime.

Ofcanz's targets may be leaders of ethnic gangs, motorcycle gangs or low-key crime bosses who may not even have a criminal conviction. "They might not be doing business right at the minute but they're in our sights. If they do ... we'll knock them over [faster]."

A POLICE officer for 33 years, Mr Burgess worked in Auckland and Palmerston North before becoming area commander in Nelson and Waikato. For the past seven years he has been detective superintendent in Christchurch.

He has dealt with some high-profile cases, including heading the Taito Phillip Field corruption case and the David Bain retrial. He also delved into the world of politics over the Paintergate scandal in 2002.

A self-confessed "nosey bastard", he was awarded the New Zealand Order of Merit in June for services to police.

Perhaps his most rewarding job was on the Commission of Inquiry into Police Conduct. After familiarising himself with the culture in every police department, Mr Burgess worked through two decades of sex-complaint cases against officers.

On the whole he found the situation "pretty encouraging", but he remains humble about all of this, describing the achievements as "blips on the radar of his career" and "nothing special".

He has no doubt the new role will bring challenges. There is no guarantee that taking out the head of a criminal organisation will disrupt drug supply and for every person they take down the simple supply and demand rules of the market could see someone else take their place.

"You might create a business opportunity for someone else to step in. We've got to be smart enough to recognise when that happens and hit them as well."

In recent months, police have been handed a range of new laws to tackle organised crime.

The Criminal Proceeds (Recovery) Act, which comes into effect next month, gives police power to seize assets they believe have been paid for by crime. In a dramatic reversal, the onus is now on the owner to prove assets have been bought lawfully.

The Anti-Money Laundering and Countering Financing of Terrorism Act gives police more powers to trace money through financial systems and calls for institutions, including casinos, to report suspicious financial activity.

A memorandum of understanding has been signed between banks and police, forging better links when investigating financial crime.

The Search and Surveillance Bill is still before Parliament. If passed, it would widen the range of offences for which police and other law enforcement agencies can intercept communications.

It also gives police the power to demand answers, in some circumstances, from people they believe may have information about offending.

This thrust of new laws makes many wonder about the sudden rise in police powers, but Mr Burgess dismisses fears of a rising police state as "spurious".

He would be astonished if his agency ever went after an innocent. "In fact we won't be looking at somebody who's not engaged in organised crime. We'll be looking at people based on good intelligence.

"[Innocent] people ... have no need to be concerned about us looking into their affairs. They're of no interest to us, we won't be going there."

THE ORGANISED AND FINANCIAL CRIME AGENCY

* New Zealand's first inter-agency squad dedicated to catching the heads of organised crime.

* The unit employs about 30 police officers but makes use of many others from a range of government departments.

* Answers to the Department of the Prime Minister and Cabinet. In October it raided gang-linked addresses in Auckland and Northland. The 14 arrested face 160 P-related charges.

* Will also work with foreign law and government agencies when necessary.

- © Fairfax NZ News