By Datuk Seri Akhbar Satar
FOUR Customs Department officers were charged yesterday (April 23) in the Johor Bahru Sessions Court with releasing two containers filled with illicit cigarettes from the Pasir Gudang Port late last year.
However, all four accused, attached with the Negeri Sembilan Customs Department, claimed trial to two separate charges.
They were alleged to have released two trade items in the form of cigarettes inside a container, which had been seized at the Pasir Gudang Port between 2.41am and 6.30pm on Nov 18, 2020.
They allegedly committed an offence under Section 136(B) of the Customs Act 1967 and can be sentenced under Section 136(I) of the same Act which is read together with Section 34 of the Penal Code.
The offence carries a prison sentence of not more than five years or a fine of not more than RM500,000 or both upon conviction.
Pending the next mention date of the case on June 20, the officers involved are innocent until proven guilty.
All-encompassing super cartel
Nevertheless, the case in itself indicates the existence of an illegal cigarette super cartel which poses a big danger to Malaysia.
Ranked first globally for illegal cigarette trade, Malaysia loses about RM5 bil in uncollected tax revenue every year.
The profit generated from the trade can easily establish a super cartel that involves a highly sophisticated value chain – from international manufacturing to transportation, warehousing, distribution channel to lawyers and enforcement agencies.
The illegal cigarettes super cartel has evolved tremendously. Even the modus operandi to bribe irresponsible officers have changed.
In fact, the culprits are getting brazen. They are even willing to exhaust all sorts of avenues, including leveraging threats, to get these officers or agencies to work with them.
Although not all officers can be bought – under the imposition of certain threat or pressure – these officers have no choice but to give in.
Dedicated leadership
In order to tackle this cartel, it is integral to ensure that all officers assigned with enforcement task are individuals with integrity.
Personnel rotation system can be effective especially in high-risk areas and so does conducting integrity testing, monitoring the activities of personnel and gathering evidence for prosecution.
Additionally, appointing a dedicated leader to spearhead important positions will help elevate or encourage officers to do their jobs with pride and without fear.
The appointed leader should be someone with integrity and dedication to tackle cartels and bring down white-collar criminals.
The Johor Police Chief Datuk Ayob Khan Mydin Pitchay is a good example of a leader with integrity as evident in the way he strives to combat crime in Johor.
Apart from enforcement, addressing the root cause driving the growth of contraband cigarettes is equally important. This can help to discourage the criminals from growing their trade. – April 24, 2021
Datuk Seri Akhbar Satar is the founder and president of the Association of Certified Fraud Examiners (ACFE)-Malaysian Chapter and a member of the Anti-Corruption Advisory Board of the Malaysian Anti-Corruption Commission (MACC).
The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.
