The Rise of ‘Vertically Integrated’ Crime: How Tobacco Wars are Redefining Organized Crime
Melbourne’s underworld has long been plagued by organized crime, but a recent shift is raising serious concerns for law enforcement. The emergence of Kazem Hamad, a deported Melbourne man now allegedly orchestrating a vast criminal enterprise from Iraq, marks a new era of sophistication and control within the illicit tobacco market. Hamad’s success isn’t just about smuggling; it’s about controlling the entire supply chain, from production to street-level sales – a ‘vertically integrated’ criminal enterprise.
From Firebombings to Billions: Hamad’s Grip on the Australian Market
In 2023, headlines announced the arrival of a “ruthless” new crime boss in Melbourne. That boss was Kazem Hamad. His rise to power wasn’t subtle. It involved a two-year campaign of firebombings and shootings, aimed at eliminating rivals and consolidating control over the illicit tobacco trade. Today, Hamad’s cartel operates across five Australian states and one territory, fueled by the popularity of “Manchester” cigarettes – a brand illegally imported and sold throughout the country.
The profits are staggering, estimated to be in the billions of dollars. Hamad’s dominance is enforced through violence, including extortion of hundreds, potentially thousands, of shops forced to sell the Manchester brand.
Manchester: A Legitimate Facade for Illicit Trade
Despite being illegal to sell in Australia, Manchester cigarettes have become the most popular tobacco brand in the country. This is due to their low price, a result of avoiding Australian taxes. But the brand’s origins are deceptively complex. While presenting itself as a British company with a London headquarters, Manchester’s real operations are based in the Jebel Ali Free Zone in Dubai.
The Jebel Ali Free Zone offers significant tax advantages and secrecy, making it an ideal hub for illicit trade. It’s estimated that the UAE is responsible for a quarter of the world’s illicit cigarettes. Manchester’s production in Dubai allows Hamad’s syndicate to control every stage of the market, from manufacturing to smuggling and distribution.
A History of Connections: The Haddara Family and the Shift in Power
Hamad’s ascent wasn’t a solo effort. He capitalized on the weakening grip of the Haddara crime family, who previously dominated the Victorian illicit tobacco market. In early 2024, Hamad allegedly forced the Haddaras to surrender their distribution networks and retail shops. This takeover was reportedly achieved through a relentless campaign of violence, including targeted attacks on Haddara-owned businesses.
Intelligence suggests that members of the Haddara family have since collaborated with Hamad’s cartel, leveraging their existing smuggling networks. This demonstrates a disturbing trend: the co-option of established criminal groups into a larger, more centralized operation.
The Future of Illicit Trade: What’s Next?
Hamad’s model represents a significant evolution in organized crime. By controlling the entire supply chain, he minimizes risk and maximizes profits. This ‘vertical integration’ is a strategy likely to be adopted by other criminal organizations. Dr. John Coyne, head of strategic policing at the Australian Strategic Policy Institute, describes this as a way to ensure a “surety of supply” and “maximum profits.”
The lack of transparency surrounding companies like Manchester, operating within free zones like Jebel Ali, poses a major challenge for law enforcement. Tracking the flow of illicit goods and disrupting these networks requires international cooperation and a deeper understanding of the financial structures that enable them.
FAQ
What is ‘vertical integration’ in the context of organized crime?
It refers to a criminal organization controlling all stages of a supply chain, from production to distribution, maximizing profits and minimizing risk.
Where are Manchester cigarettes manufactured?
They are manufactured in Dubai, in the Jebel Ali Free Zone.
Who is Kazem Hamad?
He is a deported Melbourne man who is now allegedly leading a major criminal enterprise involved in the illicit tobacco trade.
Is Manchester a legitimate tobacco brand?
While it presents itself as a British brand, its operations are largely based in Dubai and its products are illegally imported into Australia.
What is the Australian Border Force doing to combat illicit tobacco smuggling?
The Australian Border Force intercepts significant quantities of illicit cigarettes, but currently does not track brand names in their seizure data.
Did you know? The Jebel Ali Free Zone in Dubai accounts for 36% of Dubai’s GDP.
Pro Tip: Stay informed about emerging crime trends by following reports from organizations like the Australian Strategic Policy Institute and the Australian Criminal Intelligence Commission.
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