GEORGE TOWN: A "business" transaction that went awry resulted in a tense stand-off between police and an international syndicate linked to the smuggling of gold ore and wildlife.

The transaction was between four locals and eight members of the syndicate at a wooden house in Pulau Betong.

The locals had wanted to purchase snake skin and gold ore but both parties could not agree on the price.

Soon an argument broke out with the locals drawing out two pistols.

But whatever plans the gunmen had was thwarted when police, complete with a Special Forces team, arrived at the scene.
After seven hours of negotiations, all 12 occupants came out in single file with their hands on their heads.

Police moved in and seized two pistols, a pump gun, 164 pieces of python skin worth RM1 million and 10 tins containing gold ore.

All 12 suspects, including five Achenese, were detained for further investigations.

Police now believe they have crippled a major syndicate linked to the smuggling of wildlife and gold ore.

State police chief Datuk Ayub Yaakop said the drama began about 2am when the four locals turned up at the wooden house for a business deal.

"We believe the deal went awry which led them to forcibly confine the occupants within the premises," he said.

Several minutes into the business meeting, police received a tip off about illegal activities taking place in the house, and that guns were being used.

Police kept the house under surveillance for several minutes before urging the occupants to surrender.

"Initially they refused. It took us almost seven hours before they came out just before 10am," Ayub said.