Australia role in Vanuatu tax raids in question

Updated May 6, 2008 18:08:51

The Australian Federal Police have been barred from bringing any evidence of alleged tax evasion from Vanuatu to Australia, as part of its investigation of Robert Agius.

The AFP has been involved in raids on a number of financial centres in the Pacific tax haven of Vanuatu, but the validity of those raids in now being questioned.

Radio Australia's Pacific correspondent Campbell Cooney reports the application stops the Australian Federal Police from sending, in any way, information or files gathered during raids and searches over the past week, on the PKF and Equity Financial Groups, which are both linked to Robert Agius.

The warrants for the raids were issued to Vanuatu's police force, but the chairman of Vanuatu's Finance Centre Association, Mark Stafford, says Australian officers were in charge.

"The Australian Federal Police, and others, have certainly been present at these raids, giving direction it appears. they've had the leading hand I would say."

The finance centre is questioning the Australian involvement, and why Vanuatu's government permitted it.