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E292 had a meeting
with Wayne Strawhorn
and Sen-Det. Sharon Stone at Preston Market in March 1996.
"Wayne said we
had two problems,'' E2/92 said.
"The first was
that police had received information that Higgs knew about me and was talking
about having me knocked.
"The second was
that a recent court decision meant that all police information reports had to be
handed to the defence.
"Wayne told me
that there was no way known I wouldn't be identified as a result of this
decision.
"I had a few
angry words to say, telling him to fix up his problem and I would fix up Higgsy
because there was no way I was going to give fucking evidence.
"I rang Higgsy and got him to come and see me.
"I told him I
had heard police thought he was going to have me knocked.
"He assured me it wasn't me he had been talking about and that he had no
suspicions about me.''
E2/92 reported this
to Strawhorn, but the officer pointed out there was still the problem of Higgs
getting access to police information reports.
He suggested a
meeting with lawyers from the Office of Public Prosecutions.
It was at this
meeting E2/92 formed the impression that if he did not agree to give evidence
against Higgs he would be exposed to the criminals as a police informer.
"So I said a few words, something like `Well fuck you all' and stormed out
of the office,'' he said.
Sen-Det. Stone later
calmed him down and set up another meeting with lawyers from the OPP in a city
hotel.
In July 1996 E2/92 had further
meetings with police from the witness security unit.
He said they promised to
provide everything necessary to establish a new life overseas.
"I was told I
would receive $500,000 on top of any re-location expenses incurred in setting me up
overseas.''
It was only then that he told his wife of the double life he had been leading
for three years.
"Reluctantly,
we agreed to enter the witness protection scheme and for me to give evidence.
I
didn't feel I had much choice,'' E2/92 said.
"But with a
tax-free $500,000 on top of relocation expenses, I figured that at least we
would be able to start a new life away from the dangers in Australia.
Detectives working under the National Crime Authority's Operation Blade reference nabbed
Philip Ng in 1996.
Ng, 43, was the mastermind of what at the time was Victoria's biggest heroin importation
He was charged with importing
24kg of heroin - later found to have been up to 80 per cent pure - with a street
value of $24 million.
That is enough for at least
500,000 hits and at the time was the state's largest heroin bust.
It was alleged that Ng and several accomplices conspired to import the heroin from Bangkok in two lots into
Melbourne between April and October 1996.
Operation Blade was a
1000-strong national taskforce with a brief to investigate Triad gangs and other
Asian organised crime.
Police discovered the drugs had been packed into four elaborately carved Thai wall hangings.
They intercepted the wall
hangings before delivery, substituted the heroin and inserted a listening
device.
Ng and fellow gang member Wai
Man Li, 46, were arrested after taking delivery of the goods.
Ng actually had the listening
device in his pocket when police raided Li's Keilor East home.
The informer who first
established the link between Higgs and Ng later told the Herald Sun the pair had
spent a lot of time together.
"They were two people in a
similar line of business who decided to pool their resources for their mutual
benefit," the informer said.
Higgs was introduced to Ng by a
corrupt local government official who was allegedly involved in helping Higgs
set up legitimate investments, including a rock concert.
Higgs and Ng travelled to
various Asian countries together and investigated setting up a horse feed
business in Malaysia, exporting powdered milk to Vietnam and establishing a
cab-charge voucher system in Singapore.
"Higgs knew a fair bit
about horses because of his involvement in the trotting industry," the police
informer said.
"Ng was well known in
gambling circles and introduced Higgs to all the right jockey clubs in Asia."
Police were told that Ng had
told a prominent Higgs gang member he needed help to launder $700,000.
He allegedly bragged that he
would need that much laundered every week.
"Ng said he needed the
$700,000 put through accounts in Australia that couldn't be traced back to
him," a police source said.
"He then wanted it
transferred to Hong Kong."
Ng also spoke to a Higgs gang member about having access to counterfeit money through a relative in Hong
Kong."
Intelligence about Ng provided
to Victoria Police investigating Higgs was initially passed on to the NCA's
Operation Swordfish team.
Swordfish was a multi-agency
taskforce set up specifically to investigate large scale money laundering, tax
evasion and associated crimes.
Its members include lawyers,
police, intelligence analysts, financial investigators and tax office staff.
Ng became a target of Operation
Blade detectives investigating Asian organised crime after the Swordfish
taskforce uncovered evidence of heroin importation.
Four years later Ng was jailed for 25 years with a minimum of 20, one of the stiffest sentences ever given for
drug offences.
County Court judge Thomas Wodak
sentenced Ng and also jailed Ng gang member and Hong Kong national Wai Man Li,
46, for 21 years.
The judge said he was satisfied
both men were vital members of the conspiracy at a high level of the chain of
command.
Ng had been found guilty by a
County Court jury of conspiring to import a commercial quantity of heroin into
Australia.
Li pleaded guilty to the same
charge.
The judge said they were among a
group of men who conspired to import the heroin into Melbourne.
Others were involved in the
conspiracy, possibly having greater roles than Ng or Li, including one man who
had fled the country.
Part of the conspiracy involved
sending up to $2.5 million by telegraph to nominated overseas bank accounts.
Transfers were carried out
predominantly by university students, recruited directly or indirectly by
another man involved in the conspiracy, Judge Wodak said.
Li, who could face deportation
at the end of his sentence, was ordered to serve a minimum of 16 years.
But Judge Wodak said he was not
optimistic about rehabilitation prospects for Ng given his refusal to
acknowledge his involvement in "a most dreadful crime''.
Neither man showed any emotion
as they were led away.
A police taskforce, code named Sentinel,
began an investigation into a break-in at the drug squad office in late 1996
in which files and evidence in the long-running investigation into John Higgs,
were stolen.
The detective who discovered the
break-in said two separate underworld sources provided information that corrupt
police were responsible.
Drug squad detective Kevin
Hick's name was on a short list of suspects drawn up by investigators.
"We believe he was certainly implicated," a senior police source said.
One theory was that Hicks provided security and
layout details to another person who conducted the burglary.
"Another corrupt officer
deliberately sabotaged the investigation into the break-in by leaking sensitive
information to the media," former drug squad detective Sharon Stone told
the Herald Sun's Keith Moor.
"That scared off two good
quality informers who could have solved the case."
Ms Stone revealed the two sources
told investigators that corrupt officers were paid $250,000 to steal information
that would identify and locate E2/92.
She has no doubt it was a fellow
police officer - probably two - who penetrated the drug squad.
The stolen files contained
information relating to E2/92 including his overseas address.
By
the time of the break-in, E2/92 had already taken his family to Europe after
death threats were made against him.
He was woken at 3am by a phone call
from Victoria Police Superintendent Peter Halloran (left) telling him the
burglary had blown his cover and that he should move quickly.
Dragging his wife and children out
of bed, they fled to yet another European country.
Higgs's close mate David McCulloch was the prime suspect in the drug squad break-in.
McCulloch was secretly caught on tape talking to an
associate about the burglary.
He said police files relating to a friend had been
stolen during the break-in at the police operations
centre.
"I'm the prime suspect for organising the break-in,''
McCulloch admitted.
McCulloch was taken to the St Kilda Rd drug squad office for questioning after
he was arrested in 2001.
"We were taking him through the office to an interview room when he began
acting very strangely,'' Sen-Det Victor Anastasiadis
said.
"He was full of attitude and all of a sudden he shouts `Oh no, don't take me in
that room, not that room' while pointing at a particular door.''
Sen-Det Anastasiadis mentioned the outburst to a long-serving drug squad
detective.
"I took the detective and showed him which room McCulloch had pointed out,'' he
said.
"Turns out it was the room that was burgled during the 1996 drug squad
break-in.
"Very few people knew which room had been burgled, I certainly didn't know.
"Makes you wonder how McCulloch knew.''
McCulloch was named in a document
that led to the murder of police informer Terrence
Hodson.
Hodson and his wife Christine were shot dead in May 2004 after a secret report
detailing allegations he made to police was leaked to
the underworld.
Hodson told police
McCulloch confessed that he was the leader in the St
Kilda Rd break-in.
In the report, Hodson is recorded as having told police
he discussed the drug squad burglary with McCulloch.
"It appears McCulloch still has files from St Kilda
Rd,'' the Hodson police report says.
The drug squad burglary remains unsolved.
 In
a 1997 committal hearing E2/92 gave evidence
against two of Higgs' drug distributors, David
"Deadly" McLennan (Higgs' brother-in-law -
bottom right), and Ron "Strapper" Foster
(bottom left).
They,
along with gang members Donald "Dozer" Worcestor (top
left) and Bruce Alexander Wilson (top right), pleaded
guilty to drug offences.
Each
received jail terms between 12 and 33 months, with
the bulk of the sentences suspended for between 12
months and three years.
Higgs
and Worcestor had once travelled to Amsterdam to
arrange the importation of 150kg of hash with a
street value of $7.5 million.
The
pair also arranged to import 300,000 ecstasy tablets
worth $24 million from a man Worcestor met during
his time in a Thai jail.
E2/92
later said that on one occasion Burr and Worcestor
once parked their car outside a coffee shop and in
the 30 minutes they were inside, police took the car
away and installed a bug.
"The
only problem was the parking space was gone when
police tried to return the car."
"So
they had to park it quite a way up the road. When
Les and Dozer came out they couldn't find the car
and reported it stolen. Police came and found it for
them and tried to tell them they must have forgotten
where they parked it," E2/92 recalled.
"They
immediately suspected something funny was going on
and later searched the car and found a bug behind
the air-conditioner."
Vince
Mannella was shot dead at his Alister St. North Fitzroy home on January 9,
1999.
He had come under attention as a possible source of chemicals during the drug
squads Operation Phalanx into Higgs.
Four years
after E292 originally met with police, and "after Higgs and his gang were jailed as a result of
my evidence, they offered me $350,000", he said.
"That might
sound like a lot, but it won't even cover what I have already lost in earnings
and I don't have a work permit for the country I am now living in.''
At the time of
entering witness protection E2/92 was earning $150,000 a year from
his own business.
His wife had a well-paid job and they enjoyed a very
comfortable lifestyle.
"We had just
spent $70,000 renovating our home,'' he said.
"That lifestyle
ended when we went into witness protection.
"That is
despite entering into an agreement to give evidence only on the condition that
we be relocated overseas and provided with a similar lifestyle to the one we
enjoyed in Australia.''
E2/92 told
the Herald Sun he had never been
given permanent residency of any country in which to start the new
life he had been repeatedly promised.
Former police
officers were prepared to testify to witnessing the promise to pay him a tax-free
$500,000 to set up overseas.
One of those
officers left the force in disgust, citing the appalling handling of E2/92 and
the drug squad break-in as the reasons.
Although police
warned him his life was in danger they still refused to give him his tickets to
fly out of Australia until he signed a written agreement that offered him far
less protection than was verbally promised.
None of the
documentation he needed to set up a new life overseas was ready when he had to
flee Australia.
He had to find his
own accommodation and pay for many of his expenses during six months of drifting
round Europe with his family while waiting for police to organise a safe haven
for him.
It was more than
seven months before police provided him with a permit to work in the country he
was moved to.
He had to
leave that country because he couldn't afford to live there and still hasn't
been provided with a work permit for the country he is in now.
Although police rang him
after the drug squad break-in, they refused to pay for him and his family to take refuge in a neighbouring
country.
He ended up having to pay for it himself.
He was not allowed
to work while receiving a weekly wage from witness security.
He was having
difficulty living on it, so opted out of the wage in January 1998 because he was
assured his ex-gratia payment would soon be made and he planned to use it to set
up a business.
Other than one $50,000 payment about 14 months ago, he
was been
left to fend for himself without an income for more than two years.
Police command rejected a plea for money to pay for therapy which he and his wife
desperately needed to overcome stress.
Higgs pleaded
guilty in March 1999 to conspiracy to traffic amphetamines.
He was jailed for six years.
As Higgs was led from the dock he told
drug squad detective Wayne Strawhorn,
"I'll get you.
Strawhorn
would later be put behind bars himself.
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