A TRIPARTITE collaboration between the Malaysian Anti-Corruption Commission (MACC), the Royal Malaysian Customs Department, and the Inland Revenue Board of Malaysia (IRB) has successfully uncovered the activities of the largest smuggling syndicate at Port Klang.
In a recent special operation in Selangor and Kuala Lumpur, the special task force led by MACC detained a total of 19 container lorries suspected of carrying various types of smuggled untaxed goods without going through proper inspections.
According to sources, initial investigations revealed that this syndicate owned more than 10 forwarding companies used to smuggle imported goods by submitting false tax declarations.
“The results of the investigation conducted over three months found that the modus operandi of this syndicate involved used various forwarding companies registered under the names of individuals who were unaware of the import and export transactions,” they revealed.
“This was done to deceive the authorities and enable syndicate members to evade any actions against them by claiming they had no connection to the said companies.”
Furthermore, the syndicate which has been operating for over 10 years is believed to be led by a foreign male individual with his main office located overseas.
“It is estimated that this syndicate manages around 3,000 containers per month. The estimated tax evasion for the 10 years of operation amounts to RM3.5 bil based on a minimum tax of RM7,000 for each container,” noted the sources.
“To avoid taxation, the syndicate made false declarations using Customs Form 9 by declaring non-taxable items such as wheelchairs and medical supplies.”
The investigation also revealed that these ‘flying containers’ would enter the Public Licensed Warehouse of the Northern Port for only 10 to 15 minutes to deceive the authorities as they did not undergo proper customs inspection and would then be distributed throughout the country.
Meanwhile, MACC chief commissioner Tan Sri Azam Baki confirmed that the anti-graft agency had applied for remand against two individuals at the Putrajaya Magistrate’s Court this morning with the court having granted a four-day remand from today until Saturday (June 8).
Azam further stated that a thorough investigation would be conducted under the MACC Act 2009, Anti-Money Laundering Act 2001, Customs Act 1967 and the Inland Revenue Board Act 1995.
“MACC welcomes the cooperation from the Customs director-general and hopes that department heads will take similar steps to curb corruption and losses within their agencies,” praised Azam.
“We have identified the individuals of the parties involved, including the mastermind who is believed to be overseas, the company owners, forwarding agents and customs officers who colluded with this syndicate. We will detain them in the near future.
“We will also seek assistance from foreign agencies to obtain information on the accounts owned by the main mastermind so that appropriate actions can be taken.”
Previously, it was reported in the media that the MACC had successfully dismantled a smuggling and tax evasion syndicate amounting to RM2 bil over the past three years at the Kuala Lumpur International Airport Terminal (KLIA) Cargo in Sepang. – June 5, 2024
