KUALA LUMPUR: RM5 billion a year. That's the amount the government loses because of illegal cigarette smuggling, which currently makes up 60 per cent of the tobacco market in the country.
An unnamed source revealed to Skuad Khas Harian Metro that these activities are controlled by a big syndicate called the 'Ben Gang', with a mastermind simply known as Datuk Ben.
The influence that Datuk Ben has attained over the years has earned him the title of 'King of Smugglers' or 'Bapa Segala Bapa'.
To understand how Datuk Ben built his empire and became a millionaire in the process, Skuad Khas Harian Metro retraced his steps from his early days.
According to the same source, Datuk Ben first used Johor as his base for illicit activities by smuggling tires and fruits into Singapore.
"He started getting involved in cigarette smuggling in 2012. This was before the demand for those items increased drastically in 2015, following the government's decision to raise the cigarette tax rate and increase the prices of legal cigarettes.
"Because of this 'stroke of luck' and demand for cigarettes, he was able to expand his smuggling network. In fact, this syndicate masterminded by Ben is very organised and structured," the source added.
Datuk Ben and his syndicate consortium currently controls 60 per cent of the tobacco market in the country. However, if they aren't stopped, they may end up controlling 90 per cent of the market.
"Besides that, the pandemic has affected many people financially. Since legal cigarettes are more expensive than smuggled cigarettes, smokers often opt for smuggled cigarettes sold at a cheaper price.
"Now, the country loses RM5 billion a year, but it may stand to lose up to RM10 billion per annum if the Ben Gang is not stopped. This is a very possible outcome, especially with the effects of the Covid-19 pandemic," the source warned.
The syndicate network is said to have a very systematic hierarchy to facilitate Datuk Ben's smuggling activities.
"Ben has washed his hands clean and set multiple teams in place, including finance, legal, transport, storage and retail. At each tier, if someone is caught, there is a cutoff to prevent the authorities from tracing back to the source.
"The transport team alone consists of ships, boats, as well as vehicles on the road. This isn't a normal operation; it's a very well thought through organisation," said the source.
After the government tightened port-related controls involving transshipment, the smuggling syndicate is believed to rely on sea routes.
To succeed in this modus operandi, the syndicate is reported to have refurbished cargo ships to smuggle cigarettes – the source estimated that at least 10 cargo ships were being used for that purpose.
Harian Metro was also told that cigarette brands like Canyon, John and U2 were smuggled in from Vietnam, then moved to barter boats to be traded in international waters.
"Most of the shipments come from Vietnam, pass through Indonesia and arrive in Malaysia three times a week. This is a really big syndicate movement, because each cargo ship is said to hold around 130 to 150 million cigarettes.
"They use international waters as a base to avoid getting caught by local authorities in Malaysia," the source said.
Barter boats that receive the cigarettes then move them on to fishermen boats, before unloading the items at specific beaches.
The source also said that fishermen work for Datuk Ben because it's easy money for them – the rewards are high, but the risk is low. In addition, boat owners affected by the lack of tourism are also being manipulated by the syndicate.
That's not all. Datuk Ben has also allegedly opened legal business premises in Johor for the purpose of money laundering.
"In fact, Ben has also reportedly started a non-governmental organisation (NGO) that actively helps Malaysians in need," claimed the source without mentioning the specific NGO.
Lastly, the source said that the group can only be stopped with great commitment by the authorities and by enforcing the Security Offenses (Special Measures) Act 2012 (SOSMA) or Prevention of Crime Act (POCA).
"These illegal activities costing the nation RM5 billion a year can only be wiped out with dedication and commitment," said the source.
Written by: Skuad Khas Harian Metro
This article originally appeared on Harian Metro with rights to be republished on the New Straits Times.