KUALA LUMPUR (Jan 13): Six members of a syndicate alleged to have cheated the government of over RM33 million in luxury car duties will be charged at the Alor Setar Sessions Court in Kedah next Monday and Tuesday (Jan 15 and 16), according to a report on Utusan Malaysia’s website on Saturday.
All suspects, who are operators and 'runners' of a seized luxury car storage warehouse service in Pulau Langkawi, were previously detained through a special operation conducted by the Malaysian Anti-Corruption Commission (MACC) in July 2023. The six suspects will face over 21 charges under Sections 468 and 471 of the Penal Code.
The MACC operation took place after the reduction of customs duty collection from 2012 to 2021 in Langkawi came to light. According to the 2022 Auditor General's Report, there was a leakage of over RM72 million in customs duty collection involving over 100 luxury vehicles of various brands including Lamborghini, Ferrari, Porsche, Bentley, McLaren, and Rolls Royce.
The report said the MACC conducted a special operation named ‘Op Eagle’, following the 2022 AG’s Report, and identified a syndicate colluding with luxury car owners seeking exemptions and reductions in customs duties, despite being ineligible. The syndicate had allegedly submitted falsified statutory declarations of vehicle ownerships to the Royal Malaysian Customs Department.
Through this operation, MACC also detected corruption and misconduct at the Duty-Free Centre, subsequently tracing back 100 luxury cars suspected of evading customs duty, the report read.
In the first phase of the special operation conducted in the north of the country, Johor, and Sabah around July last year, the MACC successfully seized nine luxury cars of various brands valued at over RM12 million. As a result of this operation, the MACC also dismantled a syndicate illegally reducing luxury car duties, causing a government tax leakage of up to RM33 million, and detained seven individuals.
The report said MACC senior director of the Special Operations Division Datuk Azmi Kamaruzaman, when contacted, confirmed that all suspects will be charged under Sections 468 and 471 of the Penal Code. The MACC is also investigating the vehicle owners under Section 4(1)(b) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA) for possessing and disposing of proceeds from these serious criminal activities, Azmi was also quoted as saying.
It is not immediately certain whether the six had any links with the seven customs agents aged between 30 and 60 who were reportedly detained by the Kedah MACC in July last year and had also allegedly caused the government over RM33 million in losses from illegally reduced car duties.
According to a report by the New Straits Times (NST) dated July 14, 2023, citing MACC senior director (special operations) Datuk Tan Kang Sai, the seven arrested were being investigated under Section 18 of the MACC Act 2009. Citing unnamed sources, the news report noted that the suspects were believed to have conspired with car owners who submitted falsified documents to wrongly obtain a reduction in customs duty assessment.
The NST report said the MACC special operations division had also raided several business premises, government agencies and residences around the Klang Valley as well as in Kedah, Johor, Perak and Sabah.
In a separate report dated July 24, 2023, the NST, citing an unnamed source, said the MACC had tracked down as many as 100 exotic luxury cars — including McLarens and Ferraris — that were bought out of Langkawi by syndicates that have illegally obtained a reduction in duties, denying the government millions in revenue.