Smoke on the water: Australian Border Force let $300 million worth of illegal tobacco sail away

A rogue container ship was still in NSW waters, weeks after the Australian Border Force refused to let police seize the illegal cargo, all while the so-called tobacco wars spread to Sydney.

A rogue container ship carrying more than two tonnes of illegal tobacco – worth up to $300 million on Sydney’s streets – was intercepted by NSW Police off Newcastle but was allowed to sail free after Australia Border Force told officers they could not seize the cargo or bring the vessel into port.

Three weeks later, the MV Nami was still in NSW waters and was even refuelled by the Australian Maritime Safety Authority – with the blessing of the ABF – after its captain said they were low on fuel and food.

It then vanished into international waters with its illicit cargo.

The revelation, exposed by The Daily Telegraph today, comes amid concerns in Sydney of the so-called tobacco wars spreading to the Harbour City from Melbourne, where there has been a spate of fire bombings against tobacco stores.

The cargo ship, Nami, was intercepted by NSW Police off Newcastle. Picture: Supplied

Increasing numbers of NSW residents are buying cheap illegal cigarettes at corner stores instead of genuine plain packaged cigarettes at 7-Elevens or supermarkets as organised crime infiltrates the sector.

Details of the failure to grab the MV Nami’s illegal cargo – estimated to be worth $300 million on the streets – has been confirmed by both the ABF and NSW Police.

On New Year’s Day, the ABF informed NSW police the MV Nami was about a 100kms offshore south of Newcastle and possibly involved in the smuggling of illegal drugs believed to be cocaine.

NSW Police vessel Nemesis, along with officers from the ABF, boarded the ship and uncovered more than two tonnes of tobacco and cigarettes.

NSW residents are turning to cheap, illegal cigarettes. Pictures: Supplied

Australian Border Force intercepted illicit tobacco, vapes, and cigarettes during a national-wide week long operation under Taskforce Morpheus. Pictures: Supplied

The captain declared the tobacco, but would not say where is was destined and said there were no plans to come into an Australian port.

ABF claim they could not seize the tobacco because no crime could be proven and that the MV Nami was free to continue sailing.

Sources have confirmed the vessel, registered to Tanzania, was rigged so it could carry out an offshore transfer to smaller vessels while at sea.

“This stuff has been fuelling gang wars in Melbourne, where people are being shot, and is now threatening to spread to Sydney,’’ a former federal and international law enforcement officer said.

“The boat was (supposedly) heading to South Korea and ends up in Australian waters – you don’t get that lost at sea.

“The only conclusion is the tobacco was to be offloaded here in either Melbourne or NSW.

“It appears to be a mother ship, where the illegal cargo is transferred at sea and smuggled ashore – it probably came back later and did that for all we know.

“Border Force could have found a number of reasons to let NSW Police bring it in … and take that cargo … but it would be too expensive, having to store the tobacco, destroy it, et cetera. It seems like it was in the too hard basket.”

Using NSW Police vessel Nemesis, officers from both NSW Police and ABF boarded the ship and found illegal tobacco. Picture: Supplied

The vessel was also verging on being unseaworthy according to sources.

“At a time when criminal gangs are blowing up suburban shopping strips in their war for control over the hugely lucrative illegal tobacco market, Border Force have serious questions to answer over this fiasco,’’ Shadow minister for Home Affairs and Cyber security James Paterson said.

“What kind of message does it send to tobacco smugglers that they can be caught so close to our shores not once but twice with no consequences? Instead of topping up their fuel and feeding them, they should have been arrested and charged to send a strong message about protecting our borders and community. Tony Burke must step up and explain why they didn’t,’’ he said.

ABF have confirmed they asked NSW Police on January 1 to board it after they observed the boat lingering off Australian waters thousands of kilometres off course just before Christmas.

“The ABF’s Maritime Border Command observed an unknown vessel approaching the Exclusive Economic Zone (EEZ) of Australia on December 20 December 2023. Inquiries revealed the vessel had departed Taiwan on December 7 with a reported destination of South Korea,” a spokesman for the ABF said.

It was within Australian waters but beyond the Contiguous Zone (CZ), a belt of water located 24 nautical miles (NM) from the coastline making where they could only enforce migration of illegal fishing laws, not criminal, the spokesman said.

The ABF continued to monitor the Nami and asked the captain its intentions and, unsatisfied with the response, contacted NSW Police.

On January 1, NSW police and the ABF boarded and searched the vessel.

The shipping container where the illegal cigarettes coming in from China were located. Picture: Australian Border Force/Supplied

An estimated 12 million illegal cigarettes were seized. Picture: Australian Border Force/Supplied

“With several containers observed on board containing tobacco, as per the manifest. No border controlled drugs were located. Officers also identified 10 crew members on board. They were all spoken to, with no other persons sighted on the vessel,” the ABF said.

They were also satisfied there were no other people on-board beside the crew and was not being used to smuggle illegal refugees.

“No further action was taken aboard the vessel,” the ABF said.

“It was frustrating because there was nothing we could do legally about the tobacco … we may know it was coming here and going to be sold illegally, but couldn’t prove it,” said a government source.

Surveillance of the Nami continued where it “loitered approximately 100 nautical miles off the coast of NSW, with both ABF officers and Australian Maritime Safety Authority (AMSA) officers maintaining regular contact with the ship’s master, including relating to fuel and provisions,” according to the ABF.

Law enforcement estimate that over $15 million dollars worth of cigarettes were seized. Picture: Australian Border Force/Supplied

By January 22 the Nami had drifted Wollongong and when contacted again the captain said it was running critically low on fuel and provisions.

The captain was told head towards Port Kembla harbour where it anchored a few kilometres offshore on January 25 and 26 where the ABF, and Australian Federal Police again boarded the Nami.

“A search of the vessel was undertaken, with no border controlled drugs found. A large amount of tobacco and tobacco products were located, however there was insufficient information to determine the intent to import this product to mainland Australia,‘’ the ABF said.

“The vessel’s owner subsequently paid for fuel, food and additional provisions on board, before the MV Nami departed Australian waters,” they said.

The ship was monitored until it left Australian shores.

the ABF contacted a number of international law enforcement agencies about their suspicions relating to the MV Nami.

Originally published as Smoke on the water: Australian Border Force let $300 million worth of illegal tobacco sail away