Police bust Indonesia visa scam

Police have smashed an international people-trafficking ring reportedly ferrying illegal immigrants from Indonesia into New Zealand.

Four Indonesian citizens have been arrested in East Java, one caught with 230 mixed passport covers, 93 completed passports and an array of immigration stamps.

But at least another five conspirators have made it to New Zealand, according to Indonesian police.

Immigration Minister Paul Swain has compared the breach of the New Zealand visa's integrity to the theft of New Zealand passports last year by alleged Israeli Mossad agents.

Indonesia is the world's largest Islamic nation, thought to be near the top of the Immigration Service's security risk rankings, with Al Qaeda affiliate Jemaah Islamiyah still active and threatening new terrorist attacks.

Mr Swain said he would be expecting full briefings this week, but insisted there was no problem with the Immigration Service's Jakarta office, as distinct from the problems at the Bangkok office.

Immigration Service head Mary Anne Thompson said her department took such fraud extremely seriously and staff in Indonesia had worked with authorities there to uncover the alleged passport fraud and people-smuggling ring.

"The changing nature and level of complexity of fraud of this type means that the department must always be on the alert for risks such as those posed in this case."

She said investigations were continuing but would not elaborate because of "operational sensitivities".

Police were more forthcoming: a spokesman for police commissioner Rob Robinson said New Zealand police officers based in Jakarta had been been working closely with their Indonesian counterparts on the scam.

The bust sets new precedents in cooperation with Indonesian police. Spokesman Jon Neilsen said the East Java operation was conducted using a memorandum of understanding on combating transnational crime signed by Robinson and the Indonesian police chief last year.

"Four Indonesian citizens have been arrested by Indonesian national police staff from the Polda Jatim Restram [East Java police district] criminal investigation unit," he said.

It is understood that New Zealand ambassador Chris Elder has been keeping a watching brief on the investigation for up to 18 months.

A businesswoman in Surabaya was arrested on Wednesday, according to East Java Internet news site Tempo Interaktif.

Police said CV Bukit Sion director Erni Pailina Tuerah, 37, had applied for New Zealand visas, then sold them to the highest bidder.

East Java Regional Police senior detective Satriya Hari Prasetya told the website that the forgery was revealed after six disgruntled customers complained to police.

According to the victim, they had tried to order passports and visas from CV Bukit Sion on March 6, but Erni instead sold them to higher bidders for prices ranging from US$2800 to $4200 (NZ$3900-$5900).

When police raided the CV Bukit Sion office, they allegedly found a scanner, two computers, a laminating machine, a printer, 230 passport covers, 93 completed passports, and an array of immigration stamps.

What has happened to the five conspirators reported to have come to New Zealand is not known.

NZ First leader Winston Peters said New Zealand passports and visas could now be supplied on demand throughout Asia and the Middle East, raising serious national security concerns.

"Things are so bad that you can outline what you want and they'll provide it," he said. "I've been astonished to see the reaction from Mr Swain - he's in total denial."

National Party immigration spokesman Tony Ryall said New Zealand travel documents were among the most valuable in the world: "We give them out too freely."

But Mr Swain said the Government had thrown resources at border controls, and ensuring that visa applications from high risk nations were processed in Wellington, not offshore. "We've got to make sure our borders are secure," he said.

"It is an international problem when you've got people involved who are prepared to pay large amounts of money to shift across borders, and you have got potential corruption offshore and people involved in fraudulent activity and lying and cheating.

"The integrity of the passport system is hugely important; if people can get themselves into New Zealand and then apply for residency, we've got to be vigilant."

- HERALD ON SUNDAY