smh.com.au
Melbourne Underworld Figure Extorts Millions from Illicit Tobacco Shops
Melbourne underworld figure Kazem \"Kaz\" Hamad extorts nearly \$1 million monthly from hundreds of illicit tobacco shops, controlling a quarter of the state's market after a two-year campaign of violence; this follows attempts by rival gangs to monopolize the illegal trade.
- What is the extent of Kazem Hamad's influence on Melbourne's illicit tobacco market, and what are the immediate consequences of his actions?
- Kazem \"Kaz\" Hamad's criminal syndicate extorts nearly \$1 million monthly from illicit tobacco shops in Melbourne, controlling roughly 25% of the state's estimated 1300 tobacco retailers. Each shop pays a \$2000 monthly \"tax\", facing threats or firebombings for refusal.
- How did the high taxes on legal cigarettes contribute to the rise of Kazem Hamad's criminal enterprise, and what are the broader implications of this for organized crime?
- Hamad's control stems from a two-year campaign of violence following attempts by rival gangs to monopolize the illegal tobacco trade. This violence, including over 130 firebombings and several shootings, illustrates the high stakes of the illicit cigarette market and Hamad's dominance. The high taxes on legitimate cigarettes fuel the black market's growth.
- What long-term strategies are needed to combat the growth of the illicit tobacco market in Melbourne given the current challenges posed by high taxes and the slow implementation of new regulations?
- The illicit tobacco market's \$6.27 billion annual value, a 530% increase since 2017, highlights the systemic issue of high tobacco taxes driving criminal activity. The government's new tobacco licensing regime, while promising, won't be fully operational for over a year, leaving the market vulnerable to exploitation. The brazen sales of illicit products near law enforcement headquarters underscore the challenge.
Cognitive Concepts
Framing Bias
The article frames Kazem Hamad as the central figure in the story, emphasizing his criminal activities and the violence associated with his rise to power. The headline and opening paragraphs highlight his dominance in the illicit tobacco market and the scale of his extortion operation. This emphasis creates a narrative focused on individual criminality rather than exploring the broader systemic issues that contribute to the problem. For example, the enormous profits to be made are highlighted, but the article does not explore if this is the only way for certain populations to make a living.
Language Bias
While the article uses fairly neutral language in describing events, terms such as "underworld kingpin," "illicit," and "black-market" carry negative connotations that might influence reader perception. The repeated use of terms like "firebombings" and "shootings" emphasizes violence, and could create a narrative focused solely on the criminal element. More neutral alternatives could be employed, such as "illegal" in place of "illicit", and using a less sensationalized description for some violent acts, while still highlighting the dangers.
Bias by Omission
The article focuses heavily on the criminal activities of Kazem Hamad and the illicit tobacco trade, but it omits discussion of potential government regulatory failures or broader societal factors that might contribute to the growth of this black market. While it mentions high taxes on tobacco, it doesn't delve into the effectiveness of current anti-smuggling measures or explore alternative policy solutions. The lack of this context might lead readers to focus solely on individual criminal behavior, neglecting larger systemic issues.
False Dichotomy
The article presents a somewhat simplistic dichotomy between legitimate and black-market tobacco retailers, implying that those involved in the illicit trade are inherently criminal and deserve no sympathy. It doesn't explore the motivations of shop owners involved in the black market, such as economic hardship or lack of access to legitimate business opportunities. This framing overlooks the complexities of the situation and the various factors that contribute to individuals' participation in the illegal market.
Sustainable Development Goals
The article highlights a significant criminal activity that generates substantial profits for organized crime, exacerbating economic inequality. The extortion of small businesses by Kazem Hamad's syndicate creates a massive wealth disparity and undermines fair economic practices. The illicit tobacco trade thrives due to high taxes on legal tobacco, indirectly increasing the burden on lower-income individuals who may resort to cheaper, illegal alternatives.