KUALA LUMPUR (July 15): NationGate Holdings Bhd (KL:NATGATE) said on Tuesday that the Malaysian Anti-Corruption Commission (MACC) had raided the premises of its wholly owned subsidiary, NationGate Solution (M) Sdn Bhd, as part of an ongoing investigation into alleged scrap metal smuggling.
The reaction from investors was swift, sending NationGate's share price down as much as 16% or 26 sen in high volume within minutes after trading resumed from midday market break when the announcement was made. Intraday short selling on the stock was also suspended until Wednesday.
The stock ended the day down 7.5% at RM1.49, its lowest close since June 23. Trading volume was more than five times the average volume over the past 20 days as more than 160 million shares changed hands.
In a filing with Bursa Malaysia, NationGate said the raid took place on Monday. The group stressed that it views these allegations with utmost seriousness and has taken proactive measures to fully cooperate with the MACC and uphold the integrity of the probe.
“Our company remains steadfast in its commitment to the highest standards of corporate governance, accountability, and transparency.
“The board assures stakeholders that they will use their reasonable endeavours to ensure business operations remain unaffected, and appropriate interim measures have been put in place,” the company said, adding that further announcements will be made in due course.
According to a Bernama report, the MACC has launched a large-scale operation dubbed "Op Metal" against scrap metal smuggling syndicates across five states, which allegedly paid bribes to enforcement officers. This has reportedly caused the government an estimated tax revenue loss of more than RM950 million.
MACC chief commissioner Tan Sri Azam Baki confirmed that the raids targeted factories and companies exporting scrap metal overseas, the report said.
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