Seven people, including three officers of enforcement, were remanded in custody for smuggling at Port Klang

KUALA LUMPUR – Seven people, including a director of a company and three officers from the enforcement department, were remanded in custody for three days following smuggling activity discovered in Port Klang.

According to sources, the suspects — including two women and five males aged between 30 and 50 — were arrested at different locations in Port Klang Thursday (6 June) by anti-graft agents as part of an ongoing operation called “Ops Transit.”

Three enforcement officers, three employees of the company, and a director were brought before a Putrajaya Magistrate’s Court for a remand request on Friday (7th June).

Magistrate Irza Zumlaikah Rohanuddin has granted a three day remand to Sunday (9 June).

The syndicate is suspected of making false declarations on Customs forms in order to avoid paying import and tax fees. This required permits from multiple agencies, such as the Malaysian Quarantine and Inspection Services and the Energy Commission.

The mastermind of the syndicate is a Singaporean who is currently on vacation abroad with his family. Source: The Malaysian Anti-Corruption Commission has frozen nine bank account belonging to the company as well as the individuals detained.

When contacted, MACC deputy chief Commissioner Datuk Seri Ahmad Khusairi Yahaya confirms the arrests. “We are conducting an investigation under Sections 17(b) & 16(a) MACC Act 2009” He said that the investigation would also be conducted under the Anti-Money Laundering Act 2001 (AMLA).

After discussions with Customs Director-General Datuk Anis Rizana Mohdzainuddin Ahmad Khusairi stated that cases involving falsified declarations and other offenses under the Customs Act of 1967 will be dealt by the Customs Department while the Inland Revenue Board scrutinises all aspects of the tax payment by the company or individual involved.

A recent special operation conducted in Selangor, Kuala Lumpur and the MACC led task force to detain 19 container trucks suspected of carrying smuggled items.

Sources have revealed that the syndicate owns more than 10 forwarding firms used to smuggle goods imported by filing false tax declarations.

An investigation that lasted three months revealed the use of various forwarding firms registered under names of people who were unaware of import and export transactions.

This deception allowed syndicate members to avoid action by claiming that they had no connection with the companies.

This syndicate is thought to manage about 3,000 containers a month. According to the source, the estimated tax evasion in the first 10 years amounts to RM3.5bil based on a tax minimum of RM7,000 per container.

The syndicate used Customs Form 9 to make false declarations about the non-taxable nature of the goods, such as wheelchairs or medical supplies.

Investigations also revealed that “flying container” containers would only enter the Public Licensed Warehouse in North Port for 10 to 15 seconds to deceive the authorities. The containers were not properly inspected by Customs and then distributed across the country.

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