MACC raids NationGate subsidiary amid scrap metal smuggling allegations

KUALA LUMPUR: The Malaysian Anti-Corruption Commission (MACC) has conducted a raid at the premises of a subsidiary of NationGate Holdings Bhd as part of an ongoing investigation into allegations of scrap metal smuggling, the company announced in a stock exchange filing today.

It was reported earlier today that the MACC has launched a major crackdown on scrap metal smuggling syndicates in five states. These smuggling activities were reported to have resulted in an estimated tax revenue loss of over RM950mil.

NationGate, a provider of electronics manufacturing services (EMS), said the MACC's raid was conducted at the premises of NationGate Solution (M) Sdn Bhd, which is a wholly-owned subsidiary of the group.

"The board views these allegations with utmost seriousness and has taken proactive steps to ensure full cooperation with the MACC and to safeguard the integrity of the investigation. 

"Our company remains steadfast in its commitment to the highest standards of corporate governance, accountability, and transparency," it said.

It assured stakeholders that "reasonable endeavours" and appropriate interim measures were put in place to ensure business operations remained unaffected.

Prior to the midday break, shares in NationGate were traded eight sen or 4.97% higher at RM1.69 each, after 27.12 million shares changed hands.