Malaysia has suffered losses in export tax revenue exceeding RM950 million due to the activities of a scrap metal smuggling syndicate operating in five states.
The matter was uncovered after the Malaysian Anti-Corruption Commission (MACC) conducted a special operation, Op Metal, following allegations that the syndicate bribed enforcement officials.
The involvement of enforcement officers with this syndicate caused tax losses of around RM160 million over a period of six years, with a total amount reaching RM950 million.
Members of the MACC's Anti-Corruption Tactical Squad (ACTS) raided six locations in Penang to obtain evidence and documents related to scrap metal smuggling.
Investigations found that this syndicate had been smuggling scrap metal to India, China and other countries, but declared it as machinery and other metals that were not subject to the 15% export tax.
The case is being investigated under Section 4(1) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.
