A SYNDICATE running an intricate ring of cloned vehicles has been giving a new lease of life to Singaporean cars that are no longer roadworthy.
Its connection to insiders, including those with access to and are abusing the Road Transport Department (RTD) system, has given it the unbridled power to give ownership of these recycled, once high-end cars to new owners in this country.
Buyers need not worry about getting into trouble with the law as these cars would have been registered with RTD.
The syndicate’s modus operandi is rather textbook — buy over the right people — and the new tactic, sources said, “would practically shield them from the authorities”, provided “nobody talks”.
The old modus operandi of registering foreign vehicles using identical number plates of cars registered by RTD, the sources added, was not foolproof as the chassis numbers of the cloned cars would not match their grants.
There were also cases where the same plate numbers were spotted by the public and put up on social media.
The New Straits Times was made to understand that the authorities had been putting the syndicate under the microscope and were ready to move in on them.
Members of the syndicate would smuggle cars from Singapore and deploy runners to seek potential buyers.
Under Singapore’s Road Traffic Act, a certificate of entitlement (COE) gives a car owner the right to register, own and use the vehicle in the city-state for 10 years. After that, he may choose to deregister his vehicle or revalidate his COE for another five or 10 years by paying a premium.
“Suppliers from Singapore will contact the syndicate’s runners, who will seek those willing to risk buying these cars,” a source said.
The RTD insiders, the source added, had been brazenly abusing the Customs Department director-general’s good name.
This is because for the cars to be registered in the RTD system, they must appear as though they were disposed of by the Customs Department (including those under custody from seizures) and sold to the next owner.
“The insiders will register these cloned cars under the Customs director-general’s name to make it look like they are legit,” the source said.
“Once the syndicate finds buyers, it will re-register the cars under their new owners’ names and grants will be issued.”
The source explained that these unscrupulous RTD officers would also forge documents, such as the Approved Permit, Customs Form No. 1 (to import) and the Computerised Vehicle Inspection Centre’s (Puspakom) inspection form, to make the registration process appear legit.
These insiders are paid between RM2,000 and RM5,000 depending on the car model.
The demand for these cars, the source said, was on the increase because a simple check in the system would not trigger any issues and the vehicles would be at least 50 per cent cheaper than market price.
“So, the syndicate is able to convince its buyers and give the assurance that the scrapped cars have been legalised.
“The new grants basically allow them to apply for insurance and renew their road tax.”
The source said Malaysia had, in the past few years, become the “dumping site” for Singaporean cars which had “expired”.
“Some even bring their cars over and surrender them to such syndicates for a sum before their COE deadline.
“They will then lodge reports claiming that they had lost their cars and make insurance claims.
“Among luxury vehicles that the syndicate prefers are BMW, Honda, Toyota, Mini Cooper and Mitsubishi Grandis.”