A large-scale smuggling syndicate operating across five states has been busted for illegally exporting scrap iron and cheating the government out of an estimated RM950 million in export duties over the past six years.
The group allegedly disguised scrap iron as machinery or other lower-value metals to bypass the 15 per cent export duty, and is also believed to have bribed enforcement officers to facilitate their operations. Their scheme was disrupted during a coordinated sting operation, codenamed Op Metal, led by the Malaysian Anti-Corruption Commission’s (MACC) Special Operations Division in collaboration with the Customs Department, Inland Revenue Board and Bank Negara Malaysia.
Raids began simultaneously at 6pm yesterday at 19 locations across Penang, Selangor, Negri Sembilan, Johor, and Kedah. A Harian Metro journalist accompanying MACC officers witnessed raids on upscale homes and business premises in Penang. At one luxurious three-storey residence equipped with an elevator, several luxury vehicles bearing special plates were seen. The house is believed to belong to a syndicate member with a “Datuk” title, who is also the owner of a company allegedly involved in smuggling scrap iron abroad.
In a separate raid at a factory in Bukit Mertajam, MATF officers found piles of scrap iron being processed into cubes, with several foreign workers caught off-guard by the sudden operation.
Sources revealed that the syndicate exported scrap metal primarily to India, China and other countries, using false declarations to avoid paying taxes. Crooked enforcement officers allegedly received bribes to clear these shipments without inspection. The estimated loss to the government is about RM160 million annually.
Investigations are ongoing, and MACC is expected to announce the number of arrests and the value of seized assets soon. MACC Chief Commissioner Tan Sri Azam Baki confirmed the raids and said the case is being investigated under Section 4(1) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001. Authorities are also working to identify civil servants who may have aided the operation.Tools
