Former NZ detective charged in Australia over 23.5kg cocaine bust

Kelvin (Kelly) Wayne Penney.

A former New Zealand police detective has been charged in Australia's Gold Coast over a 23.5kg cocaine bust, it has been revealed.

Last month, Queensland Police launched an investigation into an alleged large-scale distribution of cocaine, MDMA and other illicit drugs as part of an operation named Yankee Mako.

On May 13, search warrants were executed at two properties in Currumbin and one in Nerang. Over the searches, 23.5kg of cocaine was seized along with 10,000 MDMA pills, steroids, cannabis, $60,000 cash, encrypted mobile phones, a money counter, prescription medication and a cryovac machine.

Queensland Police executed search warrants at two addresses in Currumbin and one in Nerang on May 13.

Two men were arrested on multiple charges. On May 14, both men made bail applications, and their identities at the time remained unknown.

Today, the Gold Coast Bulletin reported one of the men was Kelvin (Kelly) Wayne Penney, a 57-year-old former New Zealand police detective. The former officer is now a "popular local musician" who lives in Tugun, according to the report.

The other man charged is Ashley Tony Scott Watson who, according to court documents quoted by the Bulletin, is a 36-year-old plasterer from Nerang.

Penney's charges included trafficking in cocaine between January 18 and his arrest, cocaine possession in excess of 200g, MDMA possession in excess of 200g, and supplying cocaine to Watson's residence in Nerang on April 30.

Watson's charges included trafficking cocaine with Penney and one count of cocaine possession over 200g. The contraband found in Watson's possession included a money counter, opioid painkillers, testosterone and suspect cash. He did not face charges relating to the MDMA allegedly found.

Queensland Police executed search warrants at two addresses in Currumbin and one in Nerang on May 13.

Magistrate Jane Bentley denied Penney's bail application, and raised concerns about his former police career.

"It seems you have an intimate knowledge of police methodologies," Bentley said.

Watson was released on bail however, with conditions that included a $500,000 surety against the Nerang residence he owned with his partner. Additionally, he would have to wear an electronic monitoring device, report to police three times per week, and not attempt to or leave the country.

The pair are due to reappear in court on July 7.

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