In the 1980s it expanded rapidly to become a national search and rescue organisation, until the financial collapse of its Victorian Division in 1989.

It was also granted exemptions from lodging audited annual financial statements, changes to office bearers or lists of members.

Friedrich joined NSCA Victorian Division in January 1977 as a safety engineer, and was appointed executive director in 1982.

[4] Over the subsequent six years, NSCA purchased a considerable amount of equipment, and established a network of bases around Australia.

By 1989, it employed 430 people, who were known colloquially as "The Thunderbirds" after the television series of the same name, and had an annual operating budget of A$90 million.

It provided search and rescue services for the Royal Australian Air Force, state and federal governments and industry.

By the late 1980s, NSCA had more advanced search and rescue equipment than Australian Defence Force and there were reports that personnel received weapons training.

[8][9] The State Bank of Victoria wrote in an internal memo that "NSCA's status (nonprofit-making and tax exempt) and its role as a provider of community service in the fields of health, safety and emergency services render it for practical purposes a quasi government body.

[4] There were also concerns about assets reported on the books as "containerised safety equipment", which had been used as surety against multimillion-dollar loans.

[10] The Victorian Commission for Corporate Affairs conducted an investigation into NSCA's finances, and addressed the wider issue of exemptions for non-profit companies.

[4] On 27 July 1991, John Friedrich was found dead on his farm near Sale, Victoria, with a single gunshot to the head.

This caused considerable embarrassment to the Department of Defence, which had given Friedrich a security clearance and almost unlimited access to RAAF bases.