Organised crime is an integral part of present capitalist society. In this paper, which was given at the 1984 Marxist Summer School, Denis Freney explains how predominant organised crime is in Australian politics and why you should be concerned. Tl'burw ORGANISED CRIME RIGHTWING LABOR AND CRIME

would like to begin looking at this first issue of the new US magazine The wide-ranging subject with a very Rebel. Waas' article was a case study / appropriate quote: "The primary of organised crime in one US city, goals of organised crime ... are the comparable in size to or maximisation of profit. In order to Melbourne. Elsewhere, Waas achieve the greatest possible return, commented: 'Like the rest of big organised crime has found it expedient business in America, the mafia has to invest some of its capital in the realised that it has to engage .n good government." public relauons to be accepted in their communities, to expand and grow ... This statement comes not from a The only difference is that it is not marxist, but from a recent US federal routine policy for oil companies and task force on organised crime ano it is other corporations to routinely kill Denis Freney quoted in an article The Mob in people as a normal course of everyday Philadelphia by Murray Waas in the business." (Well, not in the US ot A, at

34 ALR Autumn 1984 least, and not there with guns .... ) has become multinational, spreading areas while others are new. All are I'm reminded as far as the first point its empire particularly to the highly profitable. In each area, we have of that sentence goes of the generosity Philippines, Thailand and, to a lesser a mirror copy of the functioning of exhibited bv the winci at extent, other countries in the region 'legitimate' capitalism. We have the big the Mcriah War Memorial College in In the vice districts of , business ‘organised crime' executives; Vaucluse, named after the alleged according to latest reports, Australian the medium-size 'entrepreneurs' and organised crime figure. organised crime is now even better the small-time operators — the last are entrenched than the US mafia As the ones usually caught. The 'big WHAT IS Douglas Meagher has said, 'close business' operators ao not do the dirty ORGANISED CRIME? relations' nave been found to exist work, they have their 'workers’ or hire between some Australian criminals out independent 'contractors'. They efining organised crime has and ruling circles in the Philippines — also act as financiers for small or almost become an academic jp to and including the Marcos family. medium-size operators outside their D industry. The fact is that it is a Fifth, as part of the last, Australian own organisation. A reasonably-sized very imprecise term: when two people organised crime figures have forged drug importation could cost a million get together to 'organise' a bank the closest possible links with the big dollars to mount. While one financier robbery, is that organised crime? By Ub crime families and, beyond that, may be willing to finance such a deal, it some definitions it is, as it is with the Sicilian mafia, the Naples is more likely a number will combine, 'organised'. But it reduces the Commora and the Calabrian Honored both to spread any possible loss, and definition down to an almost Society. Australian organised crime to share the profits, which are meaningless level. The only valuable has time-honoured links with iti. British enormous. way to examine the question is to draw counterparts and, in more recent the parallel between crime and decades, has forged links with French, ORGANISED CRIME ^ND 'legitimate' capitalism. Comparing the Corsican, Chinese, and other ’mafia' LEGITIMATE BUSINESS' two-person robbery of a hank with the syndicates. It is also in constant operations of the Nugan Hand ’bank' business with the Lebanese apitalism, in Its early or the alleged Abe Saffron empire is Phalangists who combine fascist terror beginnings, and each budding like comparing a family corner store with high-level drug trafficking and C capitalist today, must go with BHP. other crimes. through a process of primitive When we — and others such as accumulation of caoital. As often as Costigan and his counsel. Douglas WHAT FIELDS DOES not, such primitive accumulation has Meagher — speak of ‘organised crime' occurred historically through criminal we are talking of the top end of the ORGANISED CRIME COVER? activities. As author Richard Hall said business, of the BHPs of crime not the ouglas Meagher, the senior at the National Crimes Commission corner stores. counsel assisting the Costigan Conference last July "I suppose the Second, let's accept a practical , has listed first organised criminals were the definition of 'crime as all that breaks the main fields of organised crime.officers I of the Rum Corps. Perhaps the laws of the Commonwealth, States D will repeat them with only a Governor few Bltgh needed a Crimes and Territories of . That's not passing comments: Commission to solve the problem." to say we need endorse all those laws, •systematic robbery The descendants of these first for, as we know, many of them are • organised shoplifting (including Australian organiseo crime figures are unjust, able to be applied and directed major items such as fridges, TV sets, today the doyens of high society. against the poor, the sick and the etc.) Douglas Meagher, in his recent minorities, such as Aborigines. But •theft from wharves (not just pilfering, ANZAAS paper, lists the criminal some laws would exist in any society of but of whole containers) activities of Morgan and Vanderbilt scarcity, while others have been won • motor car theft (not for joyriding, but who had amassed enormous wealth by by w o rkin g people, fo rce d on systematic sale as spare parts profiteering from the American Civil capitalism fo regulate big business’ interstate, and even in the USA) War. We could add the names of other rampage of the workforce, the • credit card theft (often an overseas infamous 'robber barons' from environment, and to finance social operation, with the cards stolen here, Rockefeller on. welfare. Capitalism has also adopted then used in South East Asia) Today, the multinationals break laws laws ana regulations for its own good • SP bookmaking around the world. Just as Morgan in health, particularly since the Great • illegal casinos and gambling 1856 staged his own revolution in Depression, as a matter for its own • prostitution Nicaragua to get control of survival. •pornography VanderDilt’s holdings there, and Third, we should realise that •drug trafficKing Vanderbilt got the then President to organised crime in Australia, • lean sharking (Frank Hardy's latest send in US troops to defeat Morgan's particularly since World War II, and book deals with one aspect of this) 'revolutionaries’ and regain his especially since the early 'seventies, •protection rackets holdings, so, today, multinationals has been increasingly monopolised •arson have little respect for laws and legally into relatively few hands, and taken on •bankruptcy fraud (Bernie Houghton established governments. all the structures of a big corporation. of Nugan Hand fame was an expert on Meagher also notes: And just as the directors of BHP ao not this) dirty their hands at the blast furnace, • union racketeering (small-scale here, One of the earliest American fortunes was a massed bv John Jacob Astor. His but likely to spread. We'll deal with this so the lop levels of organised crime do money was originally gained through not dirty their hands with robbery, drug in more detail later.) lawlessness and violence committed trafficking or fraud. Rather, the top •taxation fraud by his agents against Indians in the directors of these corporations are the • computer fraud western fur traae. At the time he lived in investors, the organisers of the and so on, in many varied forms and Ne w Y o rk as a re s o e c ta b le organisers of the actual crimes. combinations. businessman. The money was used lo r Fourth Australian organised crime Some of these are 'traditional' crime real estate speculation in New York

Australian L e f t R ev ie w 87 35 where easily corrupted officials helped connection between legitimate government" This is not something him become the richest person in business and organised crime. new since, tor as long as crime has America. He crowned his successful In the same respect, I'm sure you are existed, corruption has existed. It business by becoming one of all waiting with bated breath for Kerry might be slipping a copper a few quid Americas greatest slum landlords, Packer to explain himself before the to turn the other eye. I think the extracting money from the poor for the Costigan Royal Commission. Costigan excellent ABC TV series Scales of privilege of living in the vilest of Justice said it all by tracing the tenement housirig. has been investigating two Westpac branches in Brisbane which had bPen evolution of corruption from the small- used to launder millions of drug and scale to the top-level. I think that very n Australia, it can be argued tnat the other 'llegal money. While few people today would believe conscious actions of BHP, James investigating, Costigan found that corruption does not exist with.n parties / Hardte Asbestos, the uranium Queensland property developer Brian and governments around the country, miners and so on in breaking health Ray, a good friend of Joh Bjelke- and not just in police forces. and safety laws and environmental Petersen, had withdrawn $225,000 Some may think the last episode of controls is more serious in its social from one of the banks for Kerry Packsr. Scales of Justice in which the young impact than the depredations of Ray said it was an interest-free loan, Attorney-General was subtly 'organised crime'. That may well be so. although Ray was in a scheme with blackmailed was exaggerated. It is but nevertheless it should not be used creditors under which he was paying therefore worth quoting Douglas as an excuse to ignore the very real them one cent in the dollar. Ray's Meagher in his ANZAAS paper on this problem posed by organised crime. associate, Ian Beamps. however, told question. But we don't have to go back to the Costigan he personally took $100,000 Corruption may be achieved in several last century to see how criminal in cash to Sydney airport and handed activity gave budding capitalists the ways. The most obvious and frequent it over to Packer's chauffeur It was means to become respectable way is by simply paying money. This part of a tax minimisation scheme, may be done by a payment to hidden businessmen, knights of the realm and Beames said, for which Packer had bank accounts, but other means are household names for their recei/ed $293,42b. available. A house may be made philanthropy. Packer at first agreed to give available at a particularly cheap price; I will mention only a couple of evidence on this affair, but then took overseas travel may be made at no cost .... Sometimes .... the corruption is examples. The first example is one ol Costigan to the federal court to stop achieved through a weakness in the the Hungarian mafia’ who arrived in him investigating. The federal judge Australia in the 'fifties along with such character of the victim, which is ruled against Packer. The judge said viciously exploited. The film of deviant people as Alexander Barton, Bela Costigan was trying to find out sexual practices; the loan to meet the Csidei and . This person whether the $225,000 paid by Ray to gambling habit. made his millions in real estate Packer was "anything to do with the Meagher ther, refers to the Nugan speculation and property develop­ distribution of drugs in Queensland". ment. He could never have done so Now, Packer may be entirely attempt to frame Frank Walker by without the aid of his corrupt friend, innocent. He may have only been setting up a secret Swiss bank account for him in an attempt to then threaten NSW Premier Sir , who involved inataxavoidancescheme. He used funds held by state government admits to having been a 'client' of the him with exposure. instrumentalities to helD him on his tax scheme, ana claimed the tax INVESTMENT IN way. This person also used the abilities commissioner got $600,000 out of it of Bernie Houghton, of Nugan Hand from him. THE STATE' and CIA fame, to carry out several t is only natural that organised profitable arson and bankruptcy want now to return to the quote crime should 'invest' in both the frauds which are ably described from the US federal task force on / parties able to form governments. (without naming names) in Meagher's / organised crime with which I Therefore, it is naturally interested in paper to the ANZAAS conference. This began. "Maximisation of profit" is the the ALP with which it has had long individual developed close links with primary goal of organised crime, as it is historic connections. It should be alleged organised crime figure Abe for any capitalist enterprise. But. like recalled that Albie Stoss, the Labor Saffion and the Kings Cross scene. He any capitalist, the wise top criminal member for the Kings Cross area for also forged a close relationship with aims to maximise profits over a period years, was present at the Double Bay the Griffith marijuana empire and its of time, not necessarily going for Summit' attended oy all alleged major principal, Robert Trimbole. maximum profits over one year or so. organised ciime figures (except Abe particularly when (he land boom 'Legitimate' Dig business 'invests' Saffron) in 1972. That 'Summit' collapsed and this person’s financial substantial sums in political parties marked a qualitative leap for Sydney empire in property development and the government and bureaucratic organ,sed crime, after some gangland collapsed. apparatus. They pay large sums to killing in the late 'sixties. And there was In Western Australia, millionaires major political parties, hire expensive Albie Sloss sitting in on thecarve-upof were born from fraudulent exploitation lobbyists, influence the media, and will organised crime between the criminal of the mining boom One of them pay high 'expenses' for a oligarchy of NSW And Labor, it should worked in close liaison with Saffron parliamentarian to speak at a be recalled, was in opposition at the and tne US mafia. Frank Nugan made convention or whatever, big business time! his first million witn a very doubtful con will think carefully about an outright The Askin years were the heyday of trick in a WA mining company. He beat bribe because of the danger of organised crime, when it really up the share values with talk of a muiti- discovery, although such scruples developea very rapidly from the million dollar Japanese mining certainly do not apply when aoing corner-shoo style of operation to that contract, wnich was never on. then business in Asia or elsewhere. of big business. Every police cashed in his shares at a huge orofit. As the US federal task force on commissioner under Askin was, Nugan went on to use this million to organised crime saio. "organised allegedly, corrupt to an extreme and, launch his huge fraud. In the case of crime has found it expedient to with the corrupl Askin himself, keot Nugan, we see the very obvious invest some of its capital in the NSW safe for organised crime. Things

36 ALR A utu m n 1984 have been so bad in NSW that we've bar owner, Sal Almarino, was. But the House, the powerful tentacles of nad a system operating of mutual person who gave him the introduction organised crime reach to the top, blackmail. The Libs and Labor both to Tham certainly knew. although there are strong couter- have so many skeletons in their closets I naven't got space here to detail all vailing forces. that each could blackmail the other. Of the other signs of penetration by Organised crime has often provided course, in recent years, the Lids have organised crime already visible at the the shock troops for reaction and, ih been so wiped out electorally, and level of federal politics. Suffice it to say South America, and in countries like have faced so many resignations, that that it is a matter of very real concern, the Philippines, it is difficult to most of those left are probably too new not only for the corruption it separate fascist military dictatorships to have too many skeletons around to represents, but the lorg-term and even from organised crime. They have worry about. short-term effect it can have on the become almost identical The CIA and Under Wran we’ve had the whole labor movement. other intelligence services have had resignation of Police Commissioner long and continuing working relations Merv Wood and the Bill Allen scandal. WHY WORRY? with organised crime. We've seen form er Chief Stipendiary Organised crime operates outside, Magistrate Farquhar before a court he 'Ned Kelly' complex remains or on the fringe of 'legitimate1 Now we've got the Rex Jackson affair strong in Australia, and no more capitalism and, by its nature, it has which has much wider implications T so than on the left. Historically, it scant regard for democratic rules. The than are generally realised. I don't may go back to our convict ancestors, same can be said, of course, for the want to take time dealing with these or what we may consider our convict multinationals and big business as a scandals which have already come to ancestors, but the parallel, ano the whole. But it would be completely light. It is beyond doubt that organised myth, is false. I hark back to what wrong to equate the two — organised crime has ’invested1 in NSW politics at Richard Hall said at the National Crime crime is qualitatively different in the all levels. Commission Conference; our first way it operates politically. organised crime figures were the The Left and, indeed, those ut what of federal politics? Until officers of the Rum Corps — the ,ailers genuinely dedicated to bourgeois recently, federal politicians had and the torturers of the convicts. democracy must understand the full Blittle to do with organised crime Today, when we taik about political and social implications of because the laws affecting the organised crime, we’re not talking unchallenged organised crime. operation of organised crime were about Ned Kellys or Robin Hoods. Another argument advanced is that state laws and the police forces We're talking about our present-day because organised crime is now so concerned were state ones. But, in Rum Corps — the BHPf of crime. But sophisticated any real challenge to it in recent years, we've seen a quiet even those who have no time for the big the framework of this society will revolution in this regard. Pederal men of organised crime sometimes mean, of necessity, the abrogation of police are now playing a major role in argue: organised crime doesn't affect civil liberties traditionally respected investigating organised crime. The tax me. And this may be so directly, but under law. Now this is undoubtedly laws are now a major threat to organised crime does affect the labor c o rr e c t. Any National Crimes organised crime whose principals movement and will do so increasingly. Commission coulo, as Justice Kirby remember that Al Capone and other Even if you consider the billions in tax told the National Crimes Commission mafia figures never went to jail for lost through organised cime, you'll Conference, end up being another murder, but ror tax evasion. And maybe understand why your tax ASIO. (No one at the conference, by another royal commission like the burden is so heavy. And if you find that the way, thought that having another Costigan one would be distinctly rightwing candidates in your next ASIO was a good idea!) unpleasant, to say the least, for union election are awash with money, But if there is a problem of possible organised crime. And it now emerges you might wonder whether some of it limitations on civil liberties for those that the federal government can play a came from a siush fund to which who are investigated, that is no excuse role in deciding wnether there is going organised crime has contributed not a for the Left or civil libertarians to to be a casino in Canberra. That little. And if your union sets up a ignore, or wish away the fundamental proposal has been killed for the pension fund shortly because of the problems arising Irom the giowth and moment by the defection of two ALP changes in superannuation laws, you sophistication of organised crime. members in the ACT House of snould not be surprised 'f organised Before concluding. I want to stress Assembly who voted against the crime begins to pay very particular another reason why socialists should casino bill despite Hawke's attention to your union, tempted by take up the issue of organised crime. championing ot it. those millions sitting in the pension Most workers have an implicit faith in One can expect organised crime to fund, able to be loaned at very low the capitalist system, even if it is mixed play a much more active role in federal interest rates for some organised crime with a great dealof cynicism. They also politics in the near future project .... have an underlying fundamental faith It is, therefore, disconcerting that But the issue goes deeper than that: in capitalism's institutions, no matter our Prime Minister, a few years ago in Italy, the Communsft party and the how cynically they may express when he landed in California, phoned Lett in certain areas dominated by the themselves about them. one Rudy Tham, a top mafia hood who mafia. Commora and Honoured Fully exposing organised crime's also doubled as a union official with Society are literally in a life-and-death nature and its links with political, the Teamsters (or Transport Workers) struggle with organised crime. police and top business circles can Union Tham told Hawke to go to a Because, in these parts of Italy, help creak the illusions. The 'rotten sleazy bar in San Francisco which was organised crime is the Establishment; apple’ theory is generally accepted by a mafia hangout, and whose owner had it is the government. And increasingly, most working ppople when it comes to shortly before squired ex-NSW it has penetrated through all Italian corruption in high places. Sure, in policeman (now in Long society, including into the Vatican, as NSW, I think workers now think there Bay for drug offences) around town. witnessed by the Elli-Sindoni-Calvi are a lot of 'rotten apples' in the oolice Now, we can accept that Hawke did affairs. Similarly, iiT parts of the USA force, and politics generally. 8ut they not know who Tham was, or who the and under Nixon, even in the White continued on page 59

Australian le f t Review 87 37 ------"TWO YOUTHS”------POSITION VACANT Offered for sale by the Tribune Artwork Fund. Edition of 350 Australian Lett Review is looking for a signed by the artist. Print size 34 x 47 cms, paper size 57 x 78 cms. $20.00 plus $3 postage and handling. Send cheque or full-time worker (or equivalent) to money order to Tribune, 12 Exploration Lane. Melbourne co-ordinate production, promotion 3000 Or call at either 12 Exploration Lane, Melbourne 3000, or and content of the magazine 4 Dixon Street, Sydney 2000. together with an editorial Silkscreened collective. The work would include reproduction co-ordinating and liaising with the of collective and convening meetings, liaising with voluntary production linocut workers and with printers, etc., by seeking contributions, seeking advertising, and implementing a promotional campaign to increase sales. Administrative skills essential, layout and design skills and previous experience on public­ ations an advantage. Previous experience with political groups or the labour movement essential. Written applications should be sent to the Selection Committee, ALR, Box A247, Sydney South PO, Sydney 2000, by 5 pm on Tuesday 1.5.84. For more information, ring Brian on (02) 264.2161. Women are particularly encouraged to apply. Name ...... Jo b share applications also welcome. Address ...... Postcode

RIGHTWING LABOR AND CRIME information through leaks, etc. capitalist press, for that matter) have from page 37 The Left must see the challenge been deafeningly silent about the mass are still seen as individual phenomena, posed by orqanised crime as one execution of criminals, or alleged isolated from one another. It remains prong of the attack by capital c*nd criminals, in China in recent months. I an illusion reaction on the labour movement. In think the Chinese actions are as addition to the ideological attack despicable as the death squads do not have the opportunity here to through the media, there is the operating in Indonesia today against discuss ways and means of organised attack through the alleged criminals (at the bottom level / combatting organised crime, or rightwing of the labour movement. of course. Suharto is still untouched). *iow worthwhile a National Crimes That organised attack has its financial A post-capita,.st society, let aione Commission would be, or what support from big business, from one worthy of the name of socialism, measures can be demanded. overseas sources such, as the CIA and has to find better wavs than exist in I believe very strongly that, at tnis other such sources. But it also gets its capitalist democracies to tackle the point, the major thing the Left can do is money from organised crime. problem. Reverting to the mediaeval lo raise workers' consciousness about On that level alone, the left needs to ways of Imperial China, Tsarist Russia, organised crime ana its connections come out fighting on the issue of or of Koranic Islam, is the opposite to with the labour movement, organised crime. what socialist should do But how a government and society as a whole. To Of course, under socialism, or in any socialist society should and could do that effectively, we need to know post-capitalist society, crime will not combat this ongoing problem is, again, much more and grtting that disappear and, because there are another, topic. knowledge depends on investigative societies of scarcity, crime, and even journalists being encouraged and organised crime, will be continuing supported by the Left in the laDOur problems. Some of the same problems Denis Freney Is a journalist, author movement. There are enough honest will arise, for example, on the issues of and sleuth. cops around to feed the necessary civil liberties ! think the Left (and the

Australian Left Review 87 59