A Serbian court on Thursday agreed to the extradition of Rohan Arnold, 44, of Jeir in the Yass Valley, and his co-accused, 34-year-old Sydney man, Tristan Waters.

They and David Campbell, 48, of Murrumbateman, who managed Mr Arnold’s Mass Steel business in Goulburn, are accused of involvement in an organised crime syndicate.  

Police allege the syndicate imported 1280 kilograms of cocaine, valued at up to $500 million, hidden in a container of pre-fabricated steel which arrived in Sydney last April. It was intercepted by authorities and kept secret while police investigated.

The trio was arrested at Belgade’s Metropol Hotel, allegedly in the middle of handing over a bag containing a pistol and $1 million foreign currencies.

Arnold is alleged to have been involved in money laundering. Campbell has been held on suspicion of possessing an unauthorised gun, seized in the January 16 Belgrade police raid. All three have been held in Belgrade prisons since their arrest.

Arnold and Waters will face formal charges when they arrive back in Australia. The Sydney Morning Herald reported that Campbell remained in Serbia, with his case pending.

It is not known when the former two will be extradited. The Attorney Generals department would only confirm the pair were arrested in response to Interpol Red Notices issued by Australia and that they were wanted to face prosecution for drug offences.

“As the matter is currently before Serbian authorities, it would not be appropriate to comment further,” a spokesperson said.

Meantime, mystery surrounds the outcome of investigations into Mass Steel’s financial affairs. The company, trading as Old MS Pty Ltd, was placed in liquidation in 2012 with alleged debts of $11.5 million. Liquidators Kazar Slaven also alleged in a report that the company had been trading while insolvent and accused Mr Arnold of company phoenixing, or shifting assets and liabilities to avoid paying tax.

Michael Slaven, now a partner with accountancy firm Ernst and Young, told The Post that following his report, a public two-day examination of Mr Arnold’s and Mr Campbell’s business dealings in respect of the company was held in the Federal Court in November, 2014.

He said it enabled him to form an opinion on the reasons for the company’s failure and whether it was “commercially worthwhile to commence litigation against them or other parties or entities.”

Mr Slaven confirmed that no formal legal proceedings were commenced against the two men. However a written demand was issued to Arnold alleging that he had allowed the company to incur debts while it was insolvent and that he had breached his duties as a company director.

“This ultimately resulted in us entering into agreement to settle all of my claims against him as liquidator,” Mr Slaven said. 

A report was sent to ASIC within six months of the hearing. Mr Slaven said he was not aware whether ASIC pursued any further action.

ASIC told the Canberra Times it did not comment on whether there was or wasn’t an investigation.

Mr Slaven said there were no secured creditors in the liquidation and employees were owed $1.5 million in entitlements, including superannuation. Unsecured creditors were owed $7.5 million but received nothing.

A federal government scheme covered $700,000 of workers’ entitlements and more was paid from company assets. 

The Goulburn Post is aware that some former employees still haven’t received their superannuation.

But Mr Slaven said his firm was paying a final dividend of $400,000 to the Australian Taxation Office.

“(Former workers) still owed superannuation will receive it in the next month or two,” he said.

Other creditors acknowledge they’ll never see their money. T&G Kelly Couriers owner/director Tony Kelly said his firm was owed $25,000.

His Braemar-based outfit transported components made at the Mass Steel’s Goulburn outlet and others picked up from Port Kembla, to Queensland in 2011. Mass Steel was supplying steel for the Mackay Hospital redevelopment, overseen by a large construction company.

While Mass Steel honoured some payments, T&G Kelly commenced legal action for the remainder after contacting Mr Arnold and Mr Campbell “numerous times” for payment.

“He (Mr Arnold) was doing all these government jobs, including a jail and a hospital, and getting paid for them but he wasn’t paying everyone else,” Mr Kelly said

“It was a bitter experience. We had subbies working for us and we had to pay them out of our own pocket.”

Asked his reaction to the pair’s arrest, Mr Kelly said: “Well I’m not worried about my $25,000 anymore.”  

Goulburn Engineering manager Wendy Wallace said Mass Steel owed her firm $6909 before it was placed in liquidation.

“We chased them from the start. It was always difficult to get money out of them,” Mrs Wallace said. 

“We sent in a debt collector in April, 2012 and he managed to get some money from them. We were lucky compared to others.”