THE NSW Police Integrity Commission has been called on to investigate an undercover police operation in which 7kg of cocaine was sold to a dealer, 6kg of which allegedly ended up “on the street”.

Officers from federal and state police and crime agencies involved in Operation Mocha gave the cocaine, with a street value of more than $1 million, to thedealer last year. Officers then monitored the dealer as the drugs were sold, but only 1kg was ever recovered. However, more than $1.1 million in cash and assets were seized under proceeds-of-crime legislation.

“Given the amount of cocaine and cash we are talking about, I call on the Government to refer the matter to the Police Integrity Commission,” said Opposition police spokesman Mike Gallacher.

Police said Operation Mocha had led to the arrests of 21 people and resulted in the smashing of a syndicate importing hundreds of kilograms of cocaine into Australia with the co-operation of Qantas baggage handlers. More arrests are expected.

Sydney Local Court heard this month that Australian Federal Police withdrew from the move to sell cocaine because it broke federal laws.

NSW Police Commissioner Ken Moroney, who approved the operation, refused yesterday to condemn the disappearance of the drugs, saying the matter was still before the courts.

“We are not engaged in a game of marbles,” Mr Moroney said. “This operation was about disrupting a significant drug syndicate with national and international connections. The agencies have been and are working to disrupt the activities of criminal networks.

“Law enforcement officers will always use whatever means are at their disposal to disrupt such drug syndicates.”

The evidence came to light during committal proceedings in Sydney Local Court, where magistrate David Heilpern described the case as extraordinary.

“The police are agreeing they have 7kg of drugs in their possession and they are agreeing for those drugs to go to street level,” Mr Heilpern said. “I felt my jaw dropping at that evidence.”

Mr Gallacher said referring the matter to the PIC was the best way to restore public confidence.