KUALA LUMPUR: The use of fronts or proxy companies as a medium to bring in meat supplies from uncertified sources remains as cartels continue to run their illicit activities.
Worse, real persons were named as "owners" and "directors" of these dubious companies, despite their alleged non-existent involvement with the entities, as seen with at least one which was registered under a Bumiputera owner.
The company is legally registered and certified by local authorities as a business entity dealing in and importing agricultural products.
Nevertheless, transaction documents, as revealed by sources to the New Straits Times and Berita Harian in December, showed the same company had been used as a proxy since its inception in 2019.
The documents recorded the sourcing of frozen meat from Brazil and approved by the company's puported owner and director.
"It is unknown how a 'ghost company' is still being used as a legitimate business on paper and go undetected by government agencies," sources said.
In 2019, 195 tonnes of frozen meat, with an estimated value of RM2.4 million, came in through the proxy company.
Last year alone, despite the Movement Control Order (MCO), the company imported 326 tonnes of supplies worth RM3 million.
Sources revealed that several containers of beef supplies from uncertified abattoirs entered the country through the company.
It was also found that a fake health certification from Australia was used to bring in the beef under the company's name, as investigators pondered about the possible involvment of government agencies.
The use of real names to mask the illegality of the company provides cartels with a scapegoat and red herring to deter authorities from zooming in on the actual masterminds.
The alleged owner of the purported Bumiputera-owned company is now at risk of facing legal action, as the cartel moves away to set up another proxy.
Checks at local markets in Klang Valley found that some traders might have been deliberately sourcing frozen beef from a warehouse in Puchong, which was raided by the authorities in February for mixing meat from certified and uncertified abattoirs.
It is believed among the supplies sourced were lungs, bones and tails from the said Puchong warehouse.
"Some of the traders are willing to be in cahoots with the warehouse operator since they are able to get cheaper supplies," said a source.
NST and BH's attempts to glean more information from the traders saw them reacting nervously to the queries on their supply source, while keeping tight-lipped.
NST and BH found the traders had their supplies packed in boxes that looked similar to the ones seized by authorities last month.
Last year, The NST frontpaged a report about the meat cartel, which had been in operation for more than 40 years.
Senior officers from no fewer than four government agencies were believed to be working hand in glove with the cartel specialising in bringing non-certified meat into Malaysia and passing it off as halal-certified products.
These senior officers, entrusted with the responsibility of ensuring that halal standards were upheld, instead received money, and even women for sex as bribes in order to turn a blind eye to the cartel's operations.
In February, authorities raided the cold storage warehouse in Puchong where 12 men, including 11 foreigners, were detained.
The Malaysian Quarantine and Inspection Services Department confirmed that frozen beef seized from the warehouse was from an uncertified abattoir.