MACC Raids Exposed Scrap Metal Smuggling Cartels

Also, enforcement officers were bribed so as to ensure that the shipments passed necessary inspections.

SEATTLE (Scrap Monster): Five states in the nation were the scene of scrap metal smuggling cartels discovered during a series of raids led by officials from the Malaysian Anti-Corruption Commission (MACC). Over the previous six years, the country is estimated to have lost over RMB 950 million in tax income as a result of these smuggling syndicates.

The Royal Malaysian Customs Department (JKDM), the Inland Revenue Board (LHDN), and Bank Negara Malaysia (BNM) were among the agencies that collaborated on the searches.The operation was conducted in a total of 19 locations across Penang, Selangor, Negeri Sembilan, Johor, and Kedah.

E-Waste from the U.S. and Japan Flowing into Malaysia

It was discovered that the syndicates were exporting scrap metal to foreign nations, mostly to locations in China and India. The consignment was discovered to have been fraudulently declared as machinery or other metals in order to avoid paying the 15% export tax. In order to guarantee that the cargoes passed the required inspections, enforcement officials were also bought off.

According to MACC Chief Commissioner Tan Sri Azam Baki, the operations were concentrated on companies and manufacturers that export scrap metal abroad. Investigations are underway to find those who might have safeguarded or enabled the syndicates' operations, including governmental employees. Baki stated that more arrests related to the operations are anticipated shortly.