KUALA LUMPUR (Aug 7): Steel products maker Mayu Global Group Bhd (KL:MAYU) on Thursday said the group and its subsidiaries have been approached by the Malaysian Anti-Corruption Commission (MACC) as part of an ongoing investigation into alleged illegal smuggling of steel scrap materials.
In a filing with Bursa Malaysia, Mayu Global said the subsidiaries involved are Progerex Sdn Bhd and SMPC Industries Sdn Bhd.
However, the group stressed that it is “not involved in any import or export activities related to steel scrap materials as all business operations of the group are strictly domestic in nature”.
Mayu Global, nonetheless, is extending its full cooperation to the MACC and is actively facilitating the investigation.
“The parties remain committed to assisting the authorities in clarifying their position in relation to the ongoing investigation,” it said.
Mayu Global added that there has been no disruption to its business operations, and that the investigation does not have any material financial or operational impact on the group.
Mayu Global, whose share price has fallen over 51% year-to-date, said it is taking the matter seriously and has implemented necessary measures to safeguard the interests of the group and its stakeholders, while also ensuring business continuity.
Last month, the MACC raided NationGate Holdings Bhd’s (KL:NATGATE) premises in connection with the same investigation.
The crackdown, dubbed “Op Metal”, targets scrap metal smuggling syndicates allegedly linked to bribery of enforcement officers, resulting in an estimated RM950 million in lost tax revenue for the country.
For Mayu Global, the MACC inquiry adds to a separate investigation by the Royal Malaysian Police (PDRM) into the long-running MBI Group pyramid scheme, which saw the group's bank accounts totalling RM10.67 million frozen as part of the probe.
PDRM also detained Mayu Global executive director Tan Kim Hee on April 2, to assist with the case, but he was released without charges on April 7.
Shares in Mayu Global finished one sen or 8.33% higher at 13 sen on Thursday, valuing the group at RM60.31 million.