TOP Glove Corp Bhd is reaching out to US Customs and Border Protection (CBP) for a speedy resolution to the enforcement of a detention order against the world’s largest glove producer’s subsidiaries.

Top Glove’s board of directors said in a filing with Bursa Malaysia that it contact the CBP to get a better understanding on the issue, adding there is a possibility the matter is related to foreign labour issues.

“We are reaching out to the CBP through our office in US, customers and consultants, to understand the issue better and work towards a speedy resolution of the matter, within an estimated two weeks,” it said in a bourse filling.

“There is a possibility this may be related to foreign labour issues, which we have already resolved, save for one more issue with regard to retrospective payment of recruitment fees by our workers to agents prior to January 2019, without our knowledge,” it told the stock exchange.

Top Glove said it has been bearing all recruitment fees since January 2019 when its Zero Recruitment Fee Policy was implemented.

“Over the past few months, we have been working on this issue, which involves extensive tracing, to establish the correct amount to be paid back to our workers on behalf of the previous agents. 

“We estimate the total amount to be about RM20 million to RM50 million,” it said.

“We believe it is in the best interests of all parties to come to a solution expeditiously so that our disposal gloves can reach the parties that need it the most, during this Covid-19 time.” 

The group said it will provide updates on the matter upon further developments.

The US has slapped Top Glove with a detention order, which is usually issued to prevent the importation of goods suspected of having been produced by forced labour.

The US CBP website shows Top Glove Sdn Bhd and TG Medical Sdn Bhd, both subsidiaries of Top Glove Corp Bhd, on the list of companies whose products are barred.

CBP did not explain why the two companies are on the list.

As at 2.21pm, Top Glove’s share price fell 2.57% to RM21.24 with 25.71 million shares changing hands. – July 16, 2020.