Serbia arrests linked to huge Sydney cocaine haul

The business partner of an Australian arrested in Serbia thought his associate was in China.

Serbian police with a suspect. Picture: Serbian Interior Ministry

A business partner of Rohan Arnold thought he was in China before the dramatic arrest of the livestock and construction industry figure in Serbia in connection to one of Australia’s biggest cocaine seizures.

Mr Arnold and two other Australian men were arrested in Belgrade’s luxury Metropol Palace hotel following a nine-month investigation that began with the secret police seizure of 1.28 tonnes of cocaine in Sydney.

The Australian Federal Police said Operation Amorgos was launched after Australian Border Force officers intercepted a container of prefabricated steel arriving into Sydney via China in April, discovering 2576 individual blocks of cocaine.

Brendan Abbey, a director of a livestock saleyard business with Mr Arnold, said he first learned of the arrest in a message but had no idea what it was until he saw the 6am TV news yesterday.

“They didn’t show his face (but) I saw enough to realise it was him,” Mr Abbey told The Australian.

“We were of the understanding he was going to China. That’s a common occurrence for him.”

Part of the 1.28 tonne cocaine seizure in Sydney. Picture: AFP

Mr Abbey was expecting Mr Arnold back to open the $16 million Western Victorian Livestock Exchange in Mortlake on Monday.

The arrest was “110 per cent out of character”, with longstanding colleagues in the dark about the men he is alleged to be associated with.

“People here have known him 25 years and they don’t know those guys either,” Mr Abbey said.

“I know he’s never used drugs, touched drugs, associated with people with drugs. His passion was sailing. It was either work or sailing. I’d like to get it emphasised it’s having no material effect on business down here. Those operations will continue as planned.”

Mr Arnold was married with two young children and had two children from a previous marriage, Mr Abbey said.

An AFP statement said the three Australians were detained “for their suspected links to an organised crime syndicate the AFP believes is responsible for facilitating” the drug importation. It was second only to the seizure of 1.4 tonnes of the drug in February last year in a separate AFP-ABF operation. AFP forensic chemists found it was 78 per cent pure, giving it an estimated street value of up to $500 million.

Cash seized in Serbia.

A bag containing wads of foreign currency was seized during the arrests in Serbia.

No arrests were made in Australia but the AFP executed five search warrants on Wednesday in Canberra, Murrumbateman, Jeir and Goulburn.

The other two Australians arrested were identified as Tristan Waters, 34, and David Campbell. A Lebanese citizen, identified as Diab Geagea, was also arrested.

Mr Waters, who Serbian authorities say is based in Dubai, was last year mentioned in a news report as having connections to some of the figures in the tax fraud investigation involving Michael Cranston’s son and daughter.

Commenting on the arrests in Serbia, AFP Detective Superintendent Stephen Dametto said Australia “remained one of the most attractive markets for drug imports”.

ABF Acting Assistant Commissioner Tim Fitzgerald said the container was travelling to Sydney when it came to the attention of officers and called it a “sophisticated concealment”.

Property developer Ben Hewlett, who is also in business with Mr Arnold, said he was “still trying to process what the hell is going on”.

Mr Hewlett and Mr Arnold built a childcare centre in the Canberra suburb Fairley, operated by the YWCA, which opened in July last year.

“We’ve known him for a bit over 18 months, and for this to come to light is a bit of a shock to everybody,” he said, adding that Mr Arnold had no role in his own company, Hewlett Property.