Prosecution of Daniel Duggan

Duggan was arrested on October 21, 2022 in Orange, New South Wales pursuant to an American warrant for his arrest.[4] The warrant was based on a December 2017 indictment which listed four charges against him: conspiracy to defraud the United States by conspiracy to unlawfully export defence services to China, conspiracy to launder money, and two counts of violating the arms export control act and international traffic in arms regulations. The indictment said Duggan did not seek formal approval from the U.S. government to provide military training to China despite the fact that the State Department had informed him by email in 2008 that he was required to do so in order train a foreign air force.[5] It also said Duggan worked with unnamed co-conspirators including one British national who was an executive of "a test flying academy based in South Africa with a presence in the PRC",  TFASA denies the accusations, saying that all of Duggan's instructions were legal and followed international norms, adding that it followed a "code of conduct" to make sure that no material would be classified or considered sensitive from a legal or operational standpoint. Duggan also denied the accusations saying he had done nothing wrong and that he had taught civilian and not military test pilots.[6]

No other pilots, management or instructors at the flying school have been charged with anything.

After Duggan's arrest, Britain's air force chief said intelligence agencies in Australia and Britain had shared information to warn pilots against working for Beijing.[7]

Duggan was categorized as an Extreme High-Risk Restricted (EHRR) and Protection Non-Association (PRNA) prisoner, although according to The Guardian[8] he has never been convicted of a crime anywhere in the world. He is being held in a two-by-four-meter cell at Lithgow Correctional Centre.

In a complaint filed with the United Nations human rights committee by Duggan's wife and lawyers, Duggan's imprisonment at the maximum security site was unjustified and causing him severe psychological distress.[9] It also noted how Duggan was not receiving appropriate treatment for his "benign prostatic hyperplasia."[10] The complaint included the testimony of a clinical psychologist who evaluated Duggan and characterized the circumstances of his confinement as "extreme" and "inhumane," and said that he was at risk of developing a serious depressive disorder despite having never suffered from mental health issues before.[11]

The legality of Mr Duggan’s arrest is now the subject of an official Inquiry by the Australian Inspector General of Intelligence and Security after he was granted security clearance by ASIO prior to returning from China in 2022.[12]

Duggan's attorneys are looking into if the U.S. "lured" him back to Australia with the help of Australian security services to extradite him.[13] One of Duggan's lawyer, Dennis Miralis, stated that while ASIO gave Duggan a security clearance to acquire an aviation license in 2022 while he was still in China, that clearance was revoked a few days after he arrived in Australia.   Duggan stated from prison that he risks "gross injustice" and a "cruelly long sentence" if extradited to the U.S., cautioning Australia against caving into the requests of "powerful countries."[14] Duggan believes he will not receive a fair trial in America, where he risks up to 60 years in jail.[15]

Another of Duggan’s lawyers Bernard Collaery said he believed the charges were politically motivated amid tensions between the United States and China. He claimed Australia, as an ally of the US, had a conflict of interest.[16]

"So far as China is concerned, we were conducting joint military exercises at sea between the Royal Australian Navy, and the PLA (People's Liberation Army) Navy at a time (2010) when Dan Duggan is accused of, as it were, consorting with the enemy. It's double-standard. It's hypocrisy," he said.[17]

"You must agree it makes a good show trial in Washington where the United States system is known for it. If Australia does extradite him we're liable to see him become a pawn in this China game. It is very worrying."[18]

Duggan’s King’s Council Bret Walker told the magistrate’s court in Sydney in July 2023 the case was unique and may be of a political character. Extradition can be challenged on several grounds, including by arguing a person is being extradited to face a political offence. “There’s been no case of this kind argued or decided before,” Mr Walker said.[19]