The Coalition assailed the incompetence displayed by the Labor-led government in handling the latest human smuggling controversy that led to the shocking flight of an Iraqi national tagged by media reports as a major operator in the illegal activity.

Opposition Leader Tony Abbott pinned the blame on the federal government, specifically the Australian Labor Party, which he accused of failing to check the loopholes on the national authorities' fight against organised human smuggling rings.

One particular group was allegedly conducting its nefarious activities steered by an Iraqi that ABC named on its Monday report as 'Captain Emad'.

Captain Emad figured prominently on the ABC documentary but the Australian Federal Police (AFP) failed to arrest and detain the Iraqi national due to the absence of evidences that would link him to the criminal operations cited by the report.

AFP chief Tony Negus admitted on Thursday that his office was alerted when Captain Emad flew out of the country on Tuesday, just a day after the ABC report was aired, but he could not send out arresting officers to apprehend the Iraqi.

Captain Emad, who The Daily Telegraph said worked in a Canberra supermarket during his stay in the country, was not even officially nominated as a suspect in a specific crime, Mr Negus said, leaving authorities helpless in preventing him from boarding a plane out of the country.

What happened, Mr Abbott said, was unfortunate and revolting at the same time but he stressed that the blame cannot be pointed to the country's police authorities.

The bulk of the responsibility rest with the Labor Government, which Mr Abbott insisted, has failed to rectify whatever was wrong on the existing mechanism that will clamp down on illegal organisations profiting from human smuggling.

"There is something wrong with our system ... and I don't blame the police, I do blame the government," the Liberal leader told Channel Nine in an interview today.

He added that the Labor government further complicated the situation with its inability to provide effective tools for the federal police to stop the activities of individuals or groups bent to capitalise on criminal operations here in Australia.

Mr Abbott noted that since the assumption of the ALP to the federal government, the AFP saw its operating budget cut off by as much as $200 million - no wonder leaving the agency ineffective in many situations.

Also, senior Liberal leader Malcolm Turnbull labelled as the latest incident as an unnecessary blot on Australia's international reputation, which he stressed "undermines our credibility in the region."

"It is one of the most disgraceful episodes in a disgraceful chronicle of incompetence on the part of this Gillard government," the former opposition leader told the Australian Associated Press (AAP) on Friday.

At this time, he fears, Mr Turnbull said, if Australia's neighbouring countries, specifically Indonesia and Malaysia, still trust the county on its campaign against human smuggling in the region.

The country's sincerity and integrity are under question, right now, the Liberal frontbencher said.

In a statement, however, Prime Minister Julia Gillard brushed aside the criticisms and maintained that her policy on the issue was still governed by the Malaysian solution, which the Australian High Court has rejected earlier this year.

Ms Gillard added that she preferred not to intervene "on police operational judgment calls," stressing that she trusts the competence and capability of the national police authorities.