GEORGE TOWN: The Malaysian Anti-Corruption Commission (MACC) has dismantled multiple scrap metal smuggling syndicates across five states, uncovering a massive tax evasion scheme estimated at over RM950 million.
The operation, conducted in collaboration with enforcement agencies, targeted businesses suspected of bribing officials to evade export taxes.
Raids were carried out at 19 locations in Penang, Selangor, Negeri Sembilan, Johor, and Kedah under ‘Op Metal.’
The crackdown involved the MACC’s Anti-Corruption Tactical Squad (ACTS), the Royal Malaysian Customs Department, the Inland Revenue Board, and Bank Negara Malaysia.
One of the first raids took place at a luxury bungalow in Batu Maung, believed to belong to a scrap metal company owner.
Authorities searched the premises for evidence while the businessman was reportedly abroad.
Another raid followed at a scrap metal processing site in Bukit Mertajam, where documents and materials linked to smuggling activities were seized.
A source revealed that the syndicates exported scrap metal to countries like India and China but falsely declared shipments to avoid the 15% export tax.
“The syndicates are believed to have bribed enforcement officers to bypass inspections,“ the source said. Over six years, this scheme allegedly caused RM160 million in annual tax losses, totaling RM950 million.
MACC chief commissioner Tan Sri Azam Baki confirmed the operation, stating that investigations are ongoing under anti-money laundering laws.
Authorities are also probing potential involvement of public servants in protecting the syndicates. - Bernama
