The raids were carried out by MACC’s special operations division through the multi-agency task force, in collaboration with the customs department, the Inland Revenue Board, and Bank Negara Malaysia, at 19 locations across Penang, Selangor, Negeri Sembilan, Johor, and Kedah.
The operation, dubbed “Op Metal”, also involved personnel from MACC’s anti-corruption tactical squad (ACTS), who raided six sites in Penang yesterday including residences, offices, and scrap metal storage and processing centres believed to be involved in the smuggling operations.
The first raid was conducted at a three-storey luxury bungalow in Batu Maung, believed to belong to a businessman who owns a scrap metal company, at around 6am on July 14.
A domestic helper opened the door after ACTS officers knocked, and a search was conducted with officials, although the company owner was reportedly out at the time.
The operations team searched for evidence and documents related to the smuggling activities while the ACTS team maintained surveillance inside and outside the home.
Later, members of the media were brought along for a raid on a scrap metal storage and processing site at Jalan Bukit Minyak in Bukit Mertajam, just as the premises were opening for business at around 9 am.
The ACTS team conducted an inspection of the zinc-fenced facility where scrap metal was believed to have been processed before being exported overseas.
The team gathered nearly 30 employees, including office staff, before conducting further checks. The premises are believed to be linked to the man whose house was raided earlier that morning.
About 15 minutes later, a man claiming to be the site’s manager arrived with assurances of full cooperation, while the operations team carried out further checks and reportedly seized several documents for investigation.
Meanwhile, a source said that seven raids in Selangor, four in Kedah, and one each in Negeri Sembilan and Johor had targeted other scrap metal centres, offices, and homes of individuals suspected to be involved in the smuggling.
Preliminary investigations revealed that the syndicates exported the scrap metal to India, China, and other countries, declaring it as machinery or other metals not subject to the 15% export tax imposed by the government.
“To ensure that the shipments passed inspections and avoided the tax, the syndicates are believed to have bribed several enforcement officers,” the source said.
The source said the complicity of certain enforcement officers had caused the government to lose around RM160 million in tax revenue per year over the past six years, with total losses estimated at over RM950 million.
The number of arrests and seizures from the operation will be updated as investigations are still ongoing.
MACC chief commissioner Azam Baki confirmed the raids in the five states.
He said the case was being investigated under Section 4(1) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.
Investigations are also focused on identifying individuals, including public servants, who may have protected the syndicate’s activities.