The bonfire, which has caused controversy in recent years, has also been festooned with anti-immigration placards with one sign reading “stop the boats” while another reads “veterans before refugees”
Police said they had received a number of reports regarding the pyre.
“The PSNI has received a number of reports regarding the bonfire in Moygashel and the material that has been placed upon it,” said a spokesperson.
“Police are investigating this hate incident.
“Police are here to help those who are or who feel vulnerable, to keep people safe.
“We do this by working with local communities, partners, elected representatives and other stakeholders to deliver local solutions to local problems, building confidence in policing and supporting a safe environment for people to live, work, visit and invest in Northern Ireland, but we can only do so within the legislative framework that exists.”
It comes after a senior Protestant church leader condemned the effigy as “racist, threatening and offensive”.
Church of Ireland Archbishop of Armagh John McDowell quoted from the book of Leviticus (19:34) which states “the stranger who resides with you shall be to you as one of your citizens; you shall love him as yourself, for you were strangers in the land of Egypt” which he described as “the words from the Law of God to his people”.
The bonfire in Moygashel with its ‘sickening’ depiction of refugees
“If we compare them with the effigy of a boat of migrants which sits, to our humiliation and lasting shame, on top of a bonfire in Moygashel, it exposes that effigy for what it is – racist, threatening and offensive,” the clergyman added.
“It certainly has nothing whatsoever to do with Christianity or with Protestant culture and is in fact inhuman and deeply sub-Christian.
“I hope that the many people from other countries, who live in that area, and who contribute so much to the economy and to the diversity of Dungannon, can be reassured that it does not in any way represent the feeling of the vast majority of their neighbours.”
Speaking on BBC Radio Ulster on Thursday, loyalist activist Jamie Bryson insisted the effigy was an “act of artistic political protest”, arguing it was not illegal, even if “inevitably controversial”.
“Every year with this bonfire there’s two conceptually different things; there’s the cultural expression of the bonfire and then there’s the act of artistic political protest and this bonfire combines the two concepts together,” he told Good Morning Ulster.
“It’s inevitably controversial; there will be questions in respect of taste and that will be up for debate but it’s certainly not unlawful and I think a lot of the people who are criticising this are the same people who are defending Kneecap, and we don’t need to go through each of Kneecap’s controversies.”
Last year there was criticism after a mock-up of a PSNI vehicle was placed on top of the bonfire.
Many have hit out at the latest stunt, branding it “racist”, while the PSNI has said it is “aware of an item placed on a bonfire at the Moygashel area” and “enquiries are continuing”.
A bonfire in Moygashel, beside Dungannon in Co. Tyrone, with an effigy of a migrant boat on top of it
First Minister Michelle O’Neill described the display as “openly racist”.
“Many people will celebrate their culture and traditions this week,” she said.
“Unfortunately, we have seen incidents that pose serious risks to life, property, the health of residents and vital public services, alongside openly racist displays that are sickening and deplorable.
“Political leadership is essential to ensure the safety of residents, patients and the wider public.
“It is entirely wrong, and completely unacceptable for these bonfires to take place in a way that endangers property, infrastructure, public services or lives.
“It’s time for leadership to be shown.”
Patrick Corrigan, Amnesty International’s Northern Ireland director, described the bonfire as a “vile, dehumanising act that fuels hatred and racism”.
“It cruelly mocks the suffering of people who risk everything to flee war, persecution, and hardship in search of safety,” he said.
“Beyond being morally reprehensible, it incites hostility toward already marginalised and vulnerable communities.
“Amnesty International urges the authorities to ensure its immediate removal and calls on the PSNI to investigate and hold those responsible to account.
“A clear and unequivocal message must be sent that xenophobia and incitement to hatred have no place in our society.”
A spokesperson for the United Against Racism campaign group said the display is particularly concerning following the racist rioting in Ballymena and elsewhere across Northern Ireland last month, which forced more than a dozen foreign national families from their homes.
“In a context of widespread violence against migrants and their homes, the burning of effigies is a precursor to the burning of people,” the spokesperson said.
“Given recent events in Ballymena, and our own recent history, we must be alive to the real dangers that such acts carry.
“This is an absolutely shocking attempt to intimidate people who are fleeing war, poverty and persecution. It deserves unreserved and unequivocal condemnation, and United Against Racism calls on political representatives to show leadership to ensure the effigy is removed.”
A bonfire in Moygashel, beside Dungannon in Co. Tyrone, with an effigy of a migrant boat on top of it
SDLP leader Claire Hanna called for leadership over bonfires, referencing the Moygashel pyre and a bonfire in south Belfast that has sparked fears over nearby asbestos and the potential to cause power outages at hospitals.
Ms Hanna said her party “supports the right of people to mark traditions in a safe and respectful way”, but that “cannot mean turning a blind eye to very real and serious concerns around public safety and community cohesion”.
“There is nothing cultural or traditional about exposing people to asbestos, endangering critical infrastructure or fuelling racial hatred through effigies demonising immigrants,” she said.
The Belfast South and Mid Down MP said progress in managing bonfires in recent years is being “undermined by a lack of leadership and by a small number of self-appointed figures who seek to drag communities backwards and who seem to thrive on confrontation and media engagement.”
Sinn Fein MLA Colm Gildernew also voiced his concerns.
“This is an absolutely disgusting act, fuelled by sickening racist and far-right attitudes,” he said.
“This is a clear incitement to hatred and must be removed immediately.
“Those who come to our island to make it their home are not the enemy. They are our friends, our neighbours, and are welcomed, cherished and valued by the vast majority of people here.
“Political leaders in this area must step up, call for the removal of these offensive materials and make it clear they do not support such vile, deplorable views.”
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A bonfire in Moygashel, beside Dungannon in Co. Tyrone, with an effigy of a migrant boat on top of it
Alliance Party councillor for the area, Eddie Roofe, also called for the display to be taken down.
“The placing of this racist model on top of the bonfire is despicable and must be removed immediately,” he said.
“It is nothing but a blatant act of racism and hatred, and cannot be excused as a celebration of culture.
“Those responsible only seek to incite fear and spread far-right beliefs and do not represent the community as a whole.
“Every year, we see incidents of hate and intimidation associated with bonfires, and this behaviour is entirely unacceptable. While Alliance supports everyone’s right to celebrate their culture and traditions, these celebrations must be conducted safely and respectfully.
“They should never come at the expense of another person.
“I urge everyone to speak out against these actions, and I hope to see these inappropriate displays taken down as soon as possible. If we are to move forward as a society, we must all begin to show respect for one another.”
The depiction of migrants in a boat on top of the pyre follows successive nights of racist violence across Northern Ireland last month, which saw dozens of homes attacked and more than 60 PSNI officers injured.
Due to the violence, the Northern Ireland Housing Executive had to provide emergency accommodation to 18 families.