Arrests Made in Case of Missing GM Holden Engines

South Australian police have arrested and charged seven people for their involvement in the theft and sale of A$2 million ($2.05 million) worth of engines and parts from GM Holden’s Elizabeth assembly plant.

Detectives from state police’s Organized Crime Investigation Branch began their inquiries in January after a police search of a premises 5 miles (8 km) from the plant found two Holden V-8 engines still in their shipping crates.

An audit by GM Holden found 140 V-8 engines, both 6.0L and 6.2L, and 175 heavy-duty transmissions missing and believed to have been stolen.

Police, operating under a special task force codenamed Operation Echidna and working with GM Holden, thus far have recovered 30 of the engines and 103 of the transmissions.

All are known to have come directly from the Holden Vehicle Operations plant in Elizabeth.

South Australian police say the investigation has focused on locating and identifying the stolen stock and then following their purchase trail.

The inquiries have been as wide-ranging as the Northern Territory, New South Wales and Queensland.

The seven people arrested face money-laundering and theft charges and are to appear in magistrate’s court Aug. 22.

The thefts took place over a 2-year period and one of those arrested was an employee of GM Holden at the Elizabeth plant during that time, police say. They also believe those arrested took part in the transportation and distribution of the stolen goods and used banking accounts to manage funds raised as a result of the sales.

Det. Supt. Peter Harvey, who heads the Organized Crime Investigation Branch, says the engines and parts were sold in a variety of ways, including on eBay and through word-of-mouth, while some purchasers were solicited directly through email.

“We are not ruling out further arrests,” Harvey says. “Inquiries are continuing to identify engines and transmissions purchased by members of the public.”

GM Holden Manufacturing Executive Director Richard Phillips says in a statement the case appears to be a high-level, sophisticated criminal fraud.

“Holden’s inventory-tracking and audit systems are robust and in line with global standards,” he says. “In late 2010, Holden’s systems uncovered a number of missing engines, triggering an internal investigation which began before the police operation and ran simultaneously and in conjunction with SAPOL’s (South Australian Police) investigation.

“GM Holden's internal investigation has already identified certain areas in which we can further tighten both inventory controls and security measures.”