KUALA LUMPUR: The largest smuggling syndicate ever on record at Port Klang was today foiled by teams from multiple agencies.
In a special operation led by the Malaysian Anti-Corruption Commission (MACC), authorities acted on combined intelligence gathered by the Royal Malaysian Customs Department (RMCD) and the Inland Revenue Board (IRB).
19 container trucks suspected of carrying various untaxed goods smuggled out without inspection were detained.
According to sources, initial investigations revealed that the syndicate operates more than 10 forwarding companies used to smuggle imported goods by making false tax declarations.
"Intelligence gathered over more than three months found that the syndicate's modus operandi involved using multiple forwarding companies registered under the names of individuals unaware of the import and export operations.
"This was intended to mislead authorities and allow syndicate members to avoid action by claiming no connection to the companies," sources said.
The syndicate is also believed to be masterminded by a foreign national based abroad who has been operating for over 10 years.
"The syndicate is estimated to handle about 3,000 containers monthly. The tax revenue loss over 10 years of operation is estimated at RM3.5 billion, based on a minimum tax value of RM7,000 per container.
"To avoid taxes, the syndicate made false declarations using Customs Form 9 (for breaking bulk purposes) by declaring non-taxable items such as wheelchairs and medical supplies," the sources added.
The intelligence also revealed that these 'flying containers' would enter the Public Bonded Warehouse (GBA) at the north port for only 10 to 15 minutes to deceive authorities, without undergoing customs inspection, and then leave the port to be distributed nationwide.
Meanwhile, MACC Chief Commissioner Tan Sri Azam Baki confirmed that the MACC applied for the remand of two individuals at the Putrajaya Magistrate's Court this morning, with the court granting a four-day remand from today until June 8, 2024.
Azam said that investigations will be thorough, covering the MACC Act 2009, Anti-Money Laundering Act, Customs Act 1967, and Acts under the Inland Revenue Board.
"The MACC highly appreciates the cooperation from the RMCD Director-General and hopes that department heads take similar measures to combat corruption and leakage in their respective agencies.
"We have identified all parties involved, including the main mastermind believed to be abroad, company owners, forwarding agents, and customs officers complicit with the syndicate and will arrest them shortly.
"MACC will also seek assistance from foreign agencies to obtain information about the mastermind's accounts to take appropriate action," he said.