Drugs accused says $1m from African phone sales

A man accused of making close to $1 million from drugs told a jury yesterday that the money came from wheeler-dealing, including selling mobile phones to Zimbabwe.

Michael Joseph Cavanagh gave evidence in the High Court at Auckland that a cellphone costing $100 to $200 in this country could sell for a profit of $5000 in the African country.

More expensive phones could cost up to $30,000, he said.

But his explanation was dismissed as nonsense by Crown prosecutor Ross Burns in his closing address.

It was more likely, he said, that Cavanagh bought the mobiles so that he could change phones often and avoid detection by the police.

Cavanagh, Shannon Kay Stevens and Deborah Anne Henry face charges including manufacturing and supplying methamphetamine, having equipment to make the drug and possession for supply.

Cavanagh is also accused of conspiring to supply a prison inmate, Brett Allison, with $300,000 worth of heroin for personal use to "see him through his lag".

Over the six-week trial the jury heard evidence of clandestine methamphetamine labs and safety deposit boxes stuffed with cash, bullion, expensive jewellery, watches and bonus bonds.

A forensic accountant conservatively assessed Cavanagh's unexplained income over five years at $960,000. Stevens' was said to be $183,000 and Henry's $157,000.

Henry and Cavanagh ran the Matapo gallery in Newmarket, importing stone statues from Zimbabwe.

But Mr Burns told the jury that as the gallery "went down the gurgler" the finances of all three accused improved dramatically as money poured in from the making and selling of methamphetamine.

The trial continues today with closing addresses by defence counsel Peter Neutze, Chris Comeskey and Kelly-Ann Stoikoff.

Justice Rod Hansen has indicated he will sum up on Monday.