Andrews gov’t warned crime gangs a growing threat before recent fire bombings on tobacco retailers

Organised crime gangs are infiltrating Victoria’s retail tobacco sector — with firebombings and murders thought linked — while the Andrews government sits on a report into how to tackle it.

Organised crime gangs have been ramping up their infiltration of Victoria’s retail tobacco industry while the state government has sat on a report into how to handle the issue for 18 months.

Local councils, police and justice agencies warned the Andrews Government that crime gangs were an increasing threat ahead of the recent fire bombings on tobacco retailers in a submission to the state government’s Illicit Tobacco Review.

The report was commissioned in 2021 from the Commissioner for Better Regulation and handed to the government in April 2022 after consultation with Department of Health, Local Government Victoria, Municipal Association of Victoria, Victoria Police, the Department of Justice and Community Safety, retailers and the tobacco industry.

Sources told the Herald Sun that a key recommendation was for the state to implement a registration scheme similar to other states, which would allow authorities to oversee tobacco sellers and to veto people licensees.

The government was warned of a growing risk before recent fire bombings on tobacco retailers. Picture: Jason Edwards

The Herald Sun understands the review was commissioned after local council officers had reported to police and the government that they could not oversee the worsening issue of illegally grown tobacco, known as “chop chop”.

There have also been reports of local council officers reporting intimidation from organised crime figures

A state government spokesman said: “The report and its recommendations are being given careful consideration — it is currently being used to inform work that will strengthen the Tobacco Act to kerb the trade of illicit tobacco and we expect to have more to say soon.”

A submission from the Municipal Association of Victoria, in February 2022 called for a state government licensing regime citing “the difficulties and inappropriateness of councils investigating illicit tobacco activities, particularly where there are likely to be links to organised crime”.

Sources told the Herald Sun that crime gangs muscled in on the tobacco trade over the past decade while the industry sat unregulated after licensing was abolished in the early 2000s.

The Herald Sun recently revealed illicit tobacco warfare may be the motive for the August 4 murder of gangland figure Mohammed “Afghan Ali” Keshtiar and that the biggest gangs were treating the trade as an arm of their drug empires.

There has been a wave of firebombings as market friction has intensified, including two in which stores at Hadfield were set alight this week

Those happened as police appealed for public information on firebomb attacks earlier this year on a Moonee Ponds store connected to underworld identity Sam “The Punisher” Abdulrahim.

Sam "The Punisher" Abdulramin in hospital. Picture: Supplied

Authorities visiting tobacco stores. Picture: Victoria Police

CCTV of a May Moonee Ponds tobacco store incident where the alleged offender caught alight during an attempted break in. Picture: Victoria Police

There are fears someone sleeping above or near a torched shop will be killed if the attacks continue.

Criminals from the Middle-eastern organised crime syndicates and outlaw motorcycle gangs have been linked to the conflict.

One source said the bikies seemed to be more involved as enforcers against competition than as operators.

A prominent MEOC family was some years ago able to take a stranglehold on the illegal smoke sector, using violence and intimidation to enforce their will.

Their dominance is now being challenged by other operators, including two heavy organised crime figures more traditionally linked to the trafficking of heroin, ice and cocaine.

A shop connected to the MEOC family was recently set alight in a clear sign rivals are prepared to take them on.

Lower risk of detection, light penalties and the high prices paid here make outlaw smokes an attractive venture.

One source said kingpins would still make a profit if two in five of their containers of tobacco got past border controls.

“This is the most expensive place in the world to buy cigarettes,” that source said.

There has been a boom in the number of shop fronts setting up around Melbourne in the past year.

The Herald Sun has been told of cases where criminals have offered an advance of two years rent cash-in-hand to get leases.

“It’s massive,” the source said.

“They (authorities) are playing catch-up.”