Tip of the dirty iceberg

IT is a sad fact of Pacific life that crooks, conmen and carpetbaggers have long been attracted to the region. In many cases, they have been colourful petty swindlers who did little real harm except to the pockets of the gullible who fell victim to their sweet-talking blandishments.

But there are signs of much more serious threats to the peoples and states of the Pacific Islands; threats that go under the generic title of transnational crime.

International criminals are well organised and w ell resourced. As they are squeezed out of other regions by tighter regulatory measures and increasing pressure from gov ernments, police and intelligence agencies, they are looking for new 7 destinations to operate in and finding the Pacific more and more attractive.

They have been helped by economic

deregulation in the region, the rise of global merchant banking systems offering easy means of making international cash transfers, improved communications and travel facilities. The problem is not yet of epidemic proportions, but the warning signs arc there.

International drug growers and traders are operating in the Papua New Guinea highlands. There is evidence of numerous bogus loan operations in PNG. A shady bank set up business in Tonga until its principal was killed by organised crime interests in the United Stales.

Two hotels were financed in Fiji by millions ofdollars moved out of Hong Kong in a classic money laundering exercise.

Dubious airline operations in Kiribati have been investigated.

A huge hashish haul in Fiji showed the Pacific w r as being used for trans-shipments between growers and users.

Cases like these are almost certainly just the tip of a pretty dirty iceberg. There is evidence that organised crime cartels involving Japanese yakuza gangsters and Chinese triad members arc operating in the region. If the mafia is not there, it is almost certainly only a matter of time before it moves in.

The Pacific will not be immune from white collar crime wdiich is growing at a worrying pace w'orldwdde.

The issue is how to deal with the problem before it gets completely out of hand, bringing yet another manifestation of modern-day outside “pollution” to the South Seas and, inevitably, further hampering the social and economic development of the island states.

New' Zealand and Australia, who have their own share of criminal activity, but being more developed arc probably better able to handle it, see the problem as potentially threatening the states’ and the region’s political and economic security.

The overall thrust of their Pacific policies is to see the region develop economically, and that requires legitimate foreign investment (not dirty money) and, as far as is possible, a crime free environment. They have a vested interest in the Pacific being a safe and clean area in which lawful international business can be conducted and the island stales’ diversify and develop prosperous economies.

The slates share this interest, of course, but being understandably eager to attract badly-needed overseas invest ment, some are not so fussy about where the money comes from

Wellington

- at least, that is the suspicion in Wellington and Canberra.

They suspect some do not have the skills or resources to be able to tell the difference between legitimate entrepreneurial activity and illegal dealings, and if they can, do not want to. The dilemma is recognised; it is very difficult for the government of a tiny island nation, desperately needing capital to create jobs, to turn down an offer of investment in a new tourist hotel, say, when its origins may be merely dubious. The temptation to take a risk and accept it is huge, and the government might well wonder what harm would be done anyway.

The harm, of course, is in its potential.

Once the international criminals are in, they will be hard to get rid of and even harder to stop diversifying their activities into other areas, with disastrous social consequences. If

drug money is in a hotel, it would be only a matter of time before the drugs are introduced to the locals. It is not a scenario any island country would welcome.

There is clearly scope for conflict between New Zealand and Australia and the island nations over this issue. The states are understandably sensitive to any move that smacks of being dictated to by their white neighbours and naturally dislike being told what is good (or bad) for themm.

But it would be a pity if sensitivities got in the way of cooperation on this issue and delayed the action required before it is 100 late to stem the increase in transnational crime in the Pacific.

A start was made at the Forum Regional Security Committee (FRSC) meeting in Suva in February (reported in Pacific Islands Monthly, March 1992) and a draft declaration on the issue will go to heads of government when ibey meet in Honiara in July. The Forum is the obvious body to co ordinate action, to avoid individual states offering loopholes which could attract international crooks and to bring united pressure to bear on those tempted to opt out.

The draft declaration recommends that the Forum take responsibility for a training programme - perhaps setting up a permanent establishmennt for the purpose - to raise the skill levels of the islands’ police, customs officers and perhaps

lawyers.

There is also a need to co-ordinate work, under the Forum umbrella, already being done by networks like the Custom Heads of Administration Regional Meeting, the South Pacific Chiefs of Police Conference and the Pacific Islands Law Officers meeting. New Zealand is keen to see observers ficm these organisations attend FRSC meetings, along with representa tives from American and French territories.

New Zealand and Australia see the development of a legislative framework in the island countries as crucial. Few have legilsation dealing with issues like the proceeds of crime and money laundering. Some states have reservations about this infringing on their sovereignty and rejected an Australian call at the FRSC meeting for a deadline for the introduction

of legislation.

The issue is certain to be one of the main talking points at the Honiara forum. It is in everybody’s interest that the talk brings results.

David

Barber