Newcastle Port drug syndicate: Claims border force at risk over failings in $20m cocaine ring

The Australian Border Force is under fire, with questions about its future, following the failure to detect an international drug ring operating out of Newcastle.

Australian Border Force officers are fearful the agency will be dissolved over its failure to prevent a major drug smuggling operation out of the Port of Newcastle, if the Labor Party is elected on May 21.

Federal and NSW Police sources said senior border force representatives were “fighting for their lives” in an effort to deflect blame over the major drug smuggling ring — which claimed the life of an unidentified scuba diver on May 9 and resulted in the recovery of 54kg of cocaine on the banks of the Hunter River at Newcastle.

Police divers at the scene. A drug mule has drowned while trying to smuggle more than 50 kilograms of cocaine to shore near the Port of Newcastle. Picture: Peter Lorimer

“The frontline response to border protection is a federal responsibility under the Australian Border Force,” a senior police source said.

“However, the ABF does not have the capabilities to conduct background checks or proactive intelligence on drug operations coming out of our ports.

“It looks like the ABF have shit the bed when it comes to stamping this criminal behaviour out”.

The Australian Border Force operates as an independent agency within the Australian Department of Home Affairs, established under former Minister Peter Dutton in December 2017.

The bulk carrier container ship from which a drug mule was trying to collect more than 50kgs of cocaine when he drowned arrived in Newcastle from Argentina. Picture: Supplied

Sources close to the situation said senior members of the agency were scrambling to prevent the border force from being redeveloped under a Labor Federal Government.

The Sunday Telegraph can reveal cargo terminal operators at the Chinese-owned Port of Newcastle oversee their own fit and proper checks on senior management, and mandatory reporting of criminal activity. However, no background checks are required for dock staff.

It comes as a senior NSW Police source said investigators were aware of known Outlaw Motorcycle Gang members being administered licenses to work at the Port of Newcastle, “without any checks or balances from the Australian Border Force”.

A drug mule has drowned while trying to smuggle an estimated more than 50 kilograms of cocaine to shore near the Port of Newcastle. Images Supplied by NSW Police.

“OMCG members are being given official government passes to get into these facilities and smuggle drugs in and out before any checks or screenings are conducted,” the source said. “This is a nightmare situation where bikies are ruling over our ports, but not enough is being done at a federal level to stop it.

“If this smuggler hadn’t died surrounded by bags of cocaine, the public would be none the wiser that this nightmare was a reality”.

An Australian Border Force spokeswoman said reports of a reduction in the number of officers was “untrue”.

“The ABF Newcastle District Office is fully resourced and entirely capable of meeting the region’s operational requirements,” she said. “ABF officers, including those in our district offices, have the agility and ability to undertake a broad range of compliance and enforcement activities 24 hours a day, seven days a week.

The scene at the Port of Newcastle where a drug mule drowned trying the retrieve more than 50kg of cocaine from the Hunter River on Monday. Police divers, AFP, detectives and local police were on the scene early on Tuesday morning to continue investigations. Picture by Peter Lorimer

“The ABF assesses vessels, travellers and cargo that cross the Australian border based on sound intelligence — this allows officers more time to undertake the range of duties under their remit.”

Meanwhile, an Australian Federal Police spokesman confirmed the border force was responsible for “detecting and reporting matters of interest”.

Port of Newcastle executive, Glen Hayward told The Sunday Telegraph all Port of Newcastle employees working on berths “have the required security certification, which is a Maritime Security Identification Card”.

“In addition, all employees require a criminal record check prior to commencing employment with Port of Newcastle,” he said. “Individuals working on Port of Newcastle controlled berths, employees, contractors, and tenant employees, all require induction and an induction card issued by Port of Newcastle, which is scanned each time an individual enters a Port of Newcastle controlled berth.”

The Australian Labor Party were contacted for comment.