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NEWS: The Age 04 Jun 03: Drug squad 'fostered' elite dealers

BigTrancer

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Drug squad 'fostered' elite dealers
June 4 2003
By Richard Baker, Darren Gray


Victoria's disbanded police drug squad may have helped create an "elite group of drug manufacturers and suppliers", the State Ombudsman has found.

In a report tabled in State Parliament last night, Ombudsman Barry Perry condemned the squad's practice of supplying large quantities of chemicals to drug manufacturers throughout the 1990s to monitor drug trafficking.

Dr Perry said the policy of "controlled chemical deliveries" had started without authority and put large quantities of chemicals into the hands of drug manufacturers without adequate controls.

Chief Commissioner Christine Nixon abolished the drug squad in 2001.

The report reveals that the squad "accumulated substantial profits" by supplying chemicals.


Dr Perry said the balance of the chemical purchase account stood at $267,137 in August 2001. But he said: "Because of the lack of proper accounts and record-keeping and the disappearance of records, the details of many transactions will never be known.

"However, the scale and complexity of many of the transactions uncovered is beyond belief."

The report said that although the practice had been in existence since 1992, financial records prior to 1996 were "virtually non-existent".

Dr Perry, who had prepared most of his interim report on the Ceja taskforce investigation into allegations of drug-related corruption before suffering a stroke on April 25, found the money had not been returned to government coffers as it should have been.

He said it had been estimated that 40 to 80 per cent of the chemicals or drugs supplied by police were not recovered.

"It is therefore reasonable to assume that the chemicals or drugs not recovered have been converted into amphetamine and illegally sold to the community."

His report said the Ceja taskforce investigations into corruption had progressed well and predicted the results of the operation would be revealed over the next 12 months.

Although stating that some would be disappointed with the lack of detail in his report, Dr Perry said he would not compromise the investigation by revealing other matters prematurely.

The report also gave details of two successful Ceja investigations that have resulted in the charging of at least seven drug squad members with numerous offences, including drug trafficking, threats to kill, money laundering and the perversion of justice.

Dr Perry alleged that former drug squad detective Wayne Strawhorn had in March this year threatened to kill a Ceja taskforce inspector. Strawhorn was arrested on March 17 on various serious charges and has been remanded in custody.

Dr Perry's report also criticises the former drug squad's use of criminal informers. "Unfortunately, the former drug squad has used unstructured, secretive, unaccountable and sometimes unprofessional methods in handling informers," it said.

The report recommends that police consider changes to the way they manage criminal informers. It suggests that police contact with informers be tape-recorded, "remotely if necessary", for safety reasons.

From: http://www.theage.com.au/articles/2003/06/03/1054406193999.html

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