A LIQUOR smuggler made about RM70 million over 10 months using a fake import licence allegedly issued by corrupt Customs Department personnel, said sources.

The Malaysian Anti-Corruption Commission (MACC) is now investigating the Customs Department for allegedly allowing the company to operate without a licence.

Sources told The Malaysian Insight the company is also said to have links with a senior Finance Ministry officer in the old Barisan Nasional administration.

In December, Customs officers in Port Klang seized liquor imported from China by the company using fake documents.

At the time, then deputy director-general of Customs Paddy Abd Halim said the company’s licence had been revoked in August after the company was caught smuggling liquor into the country.

“The goods were seized because the import duties were not paid. How did the company, which had lost its import licence, manage to continue operations?” said a source familiar with the case.

“This company made RM5 million to RM7 million a month with a fake licence.

“The Customs Department did not take action against the company as it was a ‘favourite’.”

According to the Companies Commission of Malaysia, the company is based in Bandar Sunway but a visit to the address shows no office.

Free flow

Meanwhile, the source said a company in Brickfields, reputed to be the country’s largest liquor importer, was also found to be using a fake licence.

The licence allows the company to import up to 230 million litres of liquor for a “special period” of 12 months from January to December this year.

“So far, this company has imported 60-70 containers of liquor.

“It also has special permission from Customs to import almost every liquor and alcohol brand. This includes brands that have exclusive local distributors,” he said.

The source said the problem of importers using fake documents became widespread after the amended Customs (Prohibition of Import) Order 2017 was enforced in April the same year.

The amendment requires liquor and cigarette importers to furnish their import licences when making a Customs declarations.

The aim was to tighten loopholes in the existing system but instead it became easier to smuggle in liquor and cigarettes.

“Before the amendment, there were about 50 importers. After the amendment, the number increased to 500.

“All these companies need a licence from the Customs Department. So, by right, the country should see at least a five-fold increase in revenue from import duties.

“But reports show that the government does not make much from the import duties. So why did the Customs Department issue licences to the 500 companies?”

Several liquor importers interviewed by The Malaysian Insight said they were permitted to ship in a limited quantity of alcohol that is not even 1% of what the two companies in Bandar Sunway and Brickfields each import.

“We are among the biggest beer companies in the world and the permit we have is only valid for three months, not a year. We can import just 300,000-400,000 litres with it.

“We don’t blame the companies. There must be something that is not right going on in the Customs Department,” said a beer company director, who declined to be identified.

Last month, it was reported that MACC was going after several top Customs officials for allegedly being involved in smuggling.

MACC earlier this year put on monitor six companies suspected of smuggling such goods since earlier this year. – May 13, 2019.