Police arrested six people and seized assets after targeting members and associates of the Comanchero motorcycle gang in April. Photo / Supplied
Police arrested six people and seized assets after targeting members and associates of the Comanchero motorcycle gang in April. Photo / Supplied
EDITORIAL:
Ten years after the Criminal Proceeds (Recovery) Act was enacted, more than $645 million worth of real estate, cash and other property has been restrained or forfeited by police.
In a roundabout way, and certainly unintended by those whose property has been confiscated, crime is paying formopping up its own mess.
Steered through Parliament buy then Justice Minister Simon Power, the primary purpose of the act was to establish a regime for the forfeiture of property derived directly or indirectly from significant criminal activity or that represented the value of a person's unlawfully derived income.
The big change was a conviction was no longer required for civil forfeiture and legal fees could not be met from restrained property unless approved by the High Court. This effectively cut off access to organised crime's "war chest", where those charged could stonewall proceedings by deploying expensive legal challenges to prosecutions.
After 10 years with the legislation proving its worth in gold motorcycles, police admit to steadily putting more specialist resources into enforcing the act but deny the action is "about making money". Detective Inspector Craig Hamilton said applying the act deters people from getting involved in crime and prevents the expansion of criminal business and enterprise.
It certainly could be argued the punishment has, in some cases, become out of proportion with the crime.
It is indeed a powerful piece of legislation, Hamilton admits forfeiture proceedings haven't been successful on only very rare occasions. It also has its critics. The Greens and Māori Party submitted to justice committee hearings to argue the bill should be dumped as it breached rights.
Understandably, Rob Burgess describes the law as "absolutely abhorrent". The second-hand dealer pleaded guilty to receiving $250,000 of stolen gold and jewellery and was sent to prison in 2014. His 4ha lifestyle block near Auckland was forfeited and sold for $6.8m in 2017. It certainly could be argued the punishment has, in some cases, become out of proportion with the crime.
However, in reviewing the law after five years of use, Crown prosecutor Heather McKenzie pointed out the law has protective, procedural requirements designed to help ensure people with an interest in property are fully alert to proceedings. The exercise of powers, functions and duties by police are also subject to judicial supervision, prescriptive provisions, or extraneous statutes such as the Search and Surveillance Act 2012 and its associated body of case law.
Second-hand dealer Rob Burgess at his family home in Taupaki, west Auckland, confiscated after he was convicted of fencing stolen goods. Photo / Dean Purcell
So where does the money go? Managed by the Criminal Proceeds Management Unit, an offshoot of the Official Assignee and headquartered in Napier, a good portion of the money goes towards procedural factors, such as repaying those left out of pocket by criminals, as well as legal and administration costs.
Law enforcement and health agencies can bid for funding from the remainder of the proceeds. In the past, funding has gone to causes such as a drug and alcohol court pilot, to help Customs test the purity of seized methamphetamine and training drug dogs to detect cash as well as drugs. This time last year, the Auckland City Mission was granted $16.7m to expand its central Auckland building and increase its services for drug and alcohol addicts.
As the auction gavel falls on more and more ill-gotten gains, it's clear the Criminal Proceeds (Recovery) Act is an effective hammer. And a very big one.
Editor's note: An earlier version of this editorial incorrectly stated the grant to Auckland Cirty Mission was $167m.
