GEORGE TOWN: For over six years, a well-organised smuggling syndicate has exported scrap metal to several countries, evading nearly RM1bil in export duty.
The group falsely declared the cargo as machinery and other non-taxable metal goods to bypass the government's 15% export duty, with destinations including China, India and others.
To execute the scheme, the syndicate is alleged to have bribed Customs Department officers, establishing a corrupt network that operated undetected for years.
This illicit collaboration is estimated to have caused RM160mil in direct tax losses annually, with total projected losses exceeding RM950mil over six years.
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Sources said the syndicate operated its own scrapyard with storage and processing facilities, enabling it to collect, sort and prepare large volumes of scrap metal for export in-house.
This full operational control allowed the group to manipulate documentation, conceal the true nature of the cargo, and coordinate shipments with minimal external scrutiny.
Luck ran out for the syndicate yesterday when the Malaysian Anti-Corruption Commission (MACC) launched a large-scale crackdown codenamed "Ops Metal", targeting 19 locations across Penang, Selangor, Negri Sembilan, Johor and Kedah.
In Penang, media outlets, including The Star, were on the ground from as early as 5am to witness a high-profile raid at a luxury residence in Batu Maung.
Clad in tactical gear, officers from the MACC's elite Anti-Corruption Tactical Squad (ACTS) searched the multi-storey property for evidence linked to the smuggling and corruption ring.
The operation centred on a prominent scrap metal company owner with a "Datuk" title. However, the suspect – believed to be a foreign national – was not at home, having reportedly left the country two days earlier.
Only several women, believed to be his wife, mother and domestic helper, were present.
The team then moved to a scrap metal storage and processing facility on Jalan Bukit Minyak, Penang mainland, believed to belong to the suspect.
Around 30 workers were detained for questioning and later released after a man, thought to be the facility's supervisor, assured full cooperation with the investigation.
No arrests were made across all 19 locations, though investigations remain active and the total value of seized assets has yet to be disclosed.
MACC chief commissioner Tan Sri Azam Baki confirmed the coordinated raids targeted manufacturers and companies suspected of large-scale tax evasion and bribery in scrap metal exports.
The case is being investigated under Section 4(1) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.
Efforts are also ongoing to identify those involved, including public servants suspected of facilitating the illicit operations.
