KUALA LUMPUR: A crackdown on "Ali Baba" type businesses operated by foreigners has begun, with the Malaysian Anti-Corruption Commission (MACC) arresting eight people in an operation jointly conducted with Kuala Lumpur City Hall.
The commission is adamant on not allowing such businesses to flourish and are watching them closely.
Months of surveillance and intelligence work by the anti-graft agency revealed that several business caretakers were making monthly "contributions" to law enforcement personnel for them to turn a blind eye to their illegal operations.
The payments also allowed these caretakers to be notified on raids conducted by law enforcement personnel.
Dubbed Op Star, today's operation was to identify and detain these individuals.
A total of six men and two women were hauled up during these raids.
Five of them were locals while the remaining three comprised two foreigners and a permanent resident.
They were detained on suspicion of bribing law enforcement officers in return for protection for their business activities involving foreigners using Ali Baba licences.
Among the premises inspected during the operation were sundry shops, clothing shops, telephone accessory shops, restaurants and barbers.
Sources revealed that during the six-month-long surveillance, the MACC found that all the suspects acted as caretakers of these premises.
"They had paid bribes ranging from RM200 to RM1,000 monthly to several local authority enforcement personnel to enable their business activities to continue without trouble.
"These business premises run by foreigners not only operate using Ali Baba licences, which are licences owned by local citizens, but they also employ undocumented immigrants which is clearly against the law," the source added.
It was learnt that some of these premises have been found to have been abusing their licences by carrying out business activities that vary from the business declared in their licence application forms.
Sources revealed that the monthly bribe money also helped these businesses receive leaks on enforcement operations which could affect them.
Kuala Lumpur MACC director Datuk Mohamad Fauzi Husin confirmed the arrests of all the suspects.
"We have opened investigations under Section 17(b) of the MACC Act 2009.
"These suspects will be brought to the Kuala Lumpur Sessions Court tomorrow to be charged," he said.
Yesterday, it was reported that Ali Baba type businesses run by foreigners were popping up nationwide like "mushrooms after rain".
Continuous enforcement efforts by local councils also seemed to have no effect in deterring them.
In truth, the operations being conducted seemed to be mere acts put on by these enforcement agencies, with seasonal and selective enforcement efforts observed.
The MACC surveillance had revealed that various illegal activities in big cities nationwide were being protected by these authorities.
The "protection" also covers small-scale businesses, including hawkers and shops that are now monopolised by foreigners.
MACC deputy chief commissioner (operations) Datuk Seri Ahmad Khusairi Yahaya had said the issue of giving and receiving bribes involving premises owners to law enforcement will be made public through two special operations around Kuala Lumpur.
"These operations will be a case study to prove to the responsible parties that there is corruption and protection activities involving illegal traders.
"While the MACC has limited strength and budget to monitor and act on illegal activities, it is hoped that through these operations, the local authorities will take drastic and serious measures to curb the operations involving foreign controlled hawkers," he had said.
Khusairi had added that the MACC expects to make dozens of arrests comprising of foreigners, local licence holders and enforcement officers involved in protecting these activities.