NationGate

NationGate Holdings Bhd said the recent raid by the Malaysian Anti-Corruption Commission (MACC) on its wholly owned subsidiary is not expected to significantly affect its financial or operational performance.

“For the time being, the MACC raid is not expected to have significant impact on the financial and operational of the group,” NationGate said in a filing with Bursa Malaysia today, in response to a query from the regulator.

The electronics manufacturing services provider clarified that the MACC’s search and seizure was confined to NationGate Solution (M) Sdn Bhd, which is not a major subsidiary under Bursa’s Main Market Listing Requirements.

The investigation is not believed to extend to other entities within the group.

On July 15 MACC had raided the premises of NationGate Solution in connection with an ongoing investigation into alleged scrap metal smuggling.

The market reacted swiftly to the news.

NationGate’s shares plunged as much as 16% or 26 sen shortly after trading resumed from the midday break.

The stock closed the day down 7.5% at RM1.49, marking its lowest finish since June 23.

The raid is believed to be part of a broader nationwide operation known as “Op Metal,” which targets scrap metal smuggling syndicates operating across five states.

Bernama reported that the syndicates are suspected of bribing enforcement officers and may have caused the government tax losses exceeding RM950 million. — TMR

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