The Malaysian anti-corruption body has arrested the suspected Singaporean mastermind of the smuggling syndicate that falsely declared containerised imports to avoid paying taxes.
The man, in his 40s, was apprehended on 24 June when summoned to provide a statement relating to the matter, nicknamed the “Flying Container” case, at the Malaysian Anti-Corruption Commission (MACC) office in Putrajaya, Selangor.
A local magistrate ordered that the man be remanded until 30 June.
The suspect allegedly bribed as many as 11 customs officers to let the goods pass without being inspected or taxed, reportedly resulting in the loss of MYR3.5 billion (US$742 million) of tax revenue over 10 years. The “Flying Container” incident is said to be the largest case of fraud involving containerised goods in Selangor.
The errant customs officers are among 17 people arrested so far. MACC has also seized MYR4.4 million in cash, believed to be part of the bribes paid by the syndicate.
The investigation has resulted in MACC seizing 19 containers in Port Klang containing imported goods such as vehicles, vehicle parts and solar panels.
The syndicate is believed to have set up as many as 10 forwarding companies to create false declarations by labelling the goods as duty-free items such as wheelchairs, toilet seats, textiles, and health equipment.
Martina Li
Asia Correspondent
