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Scomi Precision Engineering nuclear scandal
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<h2 id="company-profile">Company profile</h2> <p>SCOPE was set up as a subsidiary to Scomi Group on 4 Dec 2001. Before SCOPE was set up as a subsidiary of Scomi, it was known as Prisma Wibawa Sdn. Bhd. (PWSB).<a class="footnote-ref" id="fnref:4" href="#fn:4"><sup>4</sup></a> At first, PWSB had no production facility but after SCOPE was set up, a production facility was set up in 2001 in <a href="/facts/Shah_Alam/U0TUdN16">Shah Alam</a>.<a class="footnote-ref" id="fnref:5" href="#fn:5"><sup>5</sup></a> The General Manager of SCOPE was Shamsul Bahrin Rukiban. In 2001, SCOPE was reported to have secured a contract to supply components to a Dubai-based customer. </p><p>In 2002, <a href="/facts/Scomi/WJdWJP6U">Scomi</a> CEO, <a href="/facts/Shah_Hakim_Zain/WJdWJP6U">Shah Hakim Zain</a>, was appointed director of SCOPE along with Mansor Tahir and Hilmy Zaini Zainal. In that year, the company had MYR250,000 in paid up capital. Assets of MYR1.5 million, turnover of MYR12 million and profits of MYR1 million.<a class="footnote-ref" id="fnref:6" href="#fn:6"><sup>6</sup></a> </p><p>On 7 January 2005, <a href="/facts/Scomi/WJdWJP6U">Scomi Group Bhd</a> proposed to acquire from SCOPE 250,000 ordinary shares of RM1.00 each, representing the entire issued and paid-up share capital of SCOPE for RM250,000 from its wholly owned subsidiary company, Scomi Sdn. Bhd. The control of the net assets and operations of SCOPE was effectively transferred to <a href="/facts/Scomi/WJdWJP6U">Scomi Group Bhd</a> and the Group’s effective interest in SCOPE remained unchanged at 100%. </p> <h2 id="bsa-tahir">BSA Tahir</h2> <p>Soon after the <i>NY Times</i> article, the Malaysian police announced that one of Scomi's main backers, B.S.A. Tahir, had confessed to helping <a href="/facts/Abdul_Qadeer_Khan/j2wWPY3X">Dr Khan</a> sell nuclear secrets and supplies to Iran and Libya.<a class="footnote-ref" id="fnref:7" href="#fn:7"><sup>7</sup></a> He was detained without trial from 2006 to 2008, for allegedly being a national security risk, having been accused of fraudulently convincing SCOPE to produce components for centrifuges to be used in Libya's secret <a href="/facts/Uranium_enrichment/vSb2Tcsb">uranium enrichment</a> program. </p><p>Scomi officials insisted that B.S.A. Tahir had misled them to believe that the parts were intended for the oil and gas industry. However, Tahir is reported to have said that, both <a href="/facts/Shah_Hakim_Zain/WJdWJP6U">Shah Hakim Zain</a> and Kamaluddin knew the final destination of the products.<a class="footnote-ref" id="fnref:8" href="#fn:8"><sup>8</sup></a> He has accused Scomi of making fraudulent declarations<a class="footnote-ref" id="fnref:9" href="#fn:9"><sup>9</sup></a> and in 2009 he sued Shah Hakim and Kamaluddin for MYR75 million.<a class="footnote-ref" id="fnref:10" href="#fn:10"><sup>10</sup></a> </p> <h2 id="japanese-involvement">Japanese involvement</h2> <p>On 26 August 2006, the CEO and four executives of the <a href="/facts/Mitutoyo/VWJpLeqT">Mitutoyo Corporation</a> were arrested by Tokyo Police in connection with the sale of equipment to <a href="/facts/Scomi/WJdWJP6U">Scomi</a>, for the production of the <a href="/facts/Centrifuge/EVGu5ndv">centrifuge</a>.<a class="footnote-ref" id="fnref:11" href="#fn:11"><sup>11</sup></a> <a href="/facts/Mitutoyo/VWJpLeqT">Mitutoyo</a> was also investigated for supplying expertise to SCOPE related to the <a href="/facts/Nuclear_proliferation/f8dSJyAR">centrifuge manufacturing</a> project.<a class="footnote-ref" id="fnref:12" href="#fn:12"><sup>12</sup></a> </p> <h2 id="us-sanctions">U.S. sanctions</h2> <p>On 12 January 2009, the US Department of State announced that sanctions would be imposed on Dr Khan and a number of his alleged associates including BSA Tahir, <a href="/facts/Scomi/WJdWJP6U">Scomi</a> CEO, <a href="/facts/Shah_Hakim_Zain/WJdWJP6U">Shah Hakim Zain</a> and SCOPE GM, Shamsul Bahrin, for their involvement in <a href="/facts/Abdul_Qadeer_Khan/j2wWPY3X">Dr Khan's</a> nuclear proliferation network.<a class="footnote-ref" id="fnref:13" href="#fn:13"><sup>13</sup></a> These sanctions have the effect of prohibiting Shah Hakim or Shamsul Bahrin from doing business with the US government. However, Scomi itself was not among the companies listed in the sanctions.<a class="footnote-ref" id="fnref:14" href="#fn:14"><sup>14</sup></a> </p> <h2 id="malaysian-government-response">Malaysian government response</h2> <p>Given the role of the Prime Minister's son as a major shareholder of Scomi, there were calls for an independent inquiry to be carried out into the allegation of Malaysia's role in Dr. Khan's network,<a class="footnote-ref" id="fnref:15" href="#fn:15"><sup>15</sup></a> but no such thing happened. Following the 2009 decision to impose sanctions on Shah Hakim, the Malaysian Government announced that it would carry out further investigations into the matter.<a class="footnote-ref" id="fnref:16" href="#fn:16"><sup>16</sup></a> However, no further announcement has been made. </p><p>Malaysia has ratified the <a href="/facts/Nuclear_Non-Proliferation_Treaty/yE0ekVtm">Nuclear Non-Proliferation Treaty</a>. Following the breaking of the SCOPE scandal, the Malaysian government promised to tighten controls on exports of weapons-related equipment.<a class="footnote-ref" id="fnref:17" href="#fn:17"><sup>17</sup></a> However, in 2007 there were further reports that a Malaysian company was involved in the illegal arms trade, this time involving another Pakistani arms dealer, Jilani Humayun.<a class="footnote-ref" id="fnref:18" href="#fn:18"><sup>18</sup></a> There are no reports of the Malaysian government having taken action against the Malaysian company in either the case of <a href="/facts/Abdul_Qadeer_Khan/j2wWPY3X">Abdul Qadeer Khan</a> or in the case of Jilani Humayun. </p> <h2 id="see-also">See also</h2> <ul><li><i><a href="/facts/BBC_China/bIw7oGFG">BBC China</a></i>, cargo ship caught carrying nuclear components from Malaysia</li> <li><a href="/facts/Libya_and_weapons_of_mass_destruction/TAGFtpmT">Libya and weapons of mass destruction</a></li></ul> <ul> <li>nuclear technology portal</li></ul> <h2 id="references">References</h2> <ol> <li id="fn:1"><p>Bonner, Raymond (5 February 2004). "NY Times article". Malaysia; Libya: NY Times article. Archived from the original on 18 June 2013. Retrieved 8 August 2010. <a href="https://web.archive.org/web/20130618053337/http://www.nytimes.com/2004/02/05/international/asia/05MALA.html?adxnnl=1&adxnnlx=1075995897-O5J1NQmpBFq6Do%2FAthhBqg" target="_blank">https://web.archive.org/web/20130618053337/http://www.nytimes.com/2004/02/05/international/asia/05MALA.html?adxnnl=1&adxnnlx=1075995897-O5J1NQmpBFq6Do%2FAthhBqg</a> <a href="#fnref:1" class="footnote-back-ref">↩</a></p></li> <li id="fn:2"><p>"US State Department release". State.gov. 12 January 2009. Retrieved 8 August 2010. <a href="https://2009-2017.state.gov/t/isn/115913.htm" target="_blank">https://2009-2017.state.gov/t/isn/115913.htm</a> <a href="#fnref:2" class="footnote-back-ref">↩</a></p></li> <li id="fn:3"><p>http://www.btimes.com.my/Current_News/BTIMES/articles/20110719234710/Article/ [dead link] <a href="http://www.btimes.com.my/Current_News/BTIMES/articles/20110719234710/Article/" target="_blank">http://www.btimes.com.my/Current_News/BTIMES/articles/20110719234710/Article/</a> <a href="#fnref:3" class="footnote-back-ref">↩</a></p></li> <li id="fn:4"><p>Report by Malaysian Police <a href="http://isis-online.org/uploads/iaea-reports/documents/Malaysian_Police_Report.pdf" target="_blank">http://isis-online.org/uploads/iaea-reports/documents/Malaysian_Police_Report.pdf</a> <a href="#fnref:4" class="footnote-back-ref">↩</a></p></li> <li id="fn:5"><p>"Location of SCOPE factory". Streetdirectory.com.my. Retrieved 8 August 2010. <a href="http://www.streetdirectory.com.my/malaysia/kl/travel/travel_id_11469/travel_site_159658/" target="_blank">http://www.streetdirectory.com.my/malaysia/kl/travel/travel_id_11469/travel_site_159658/</a> <a href="#fnref:5" class="footnote-back-ref">↩</a></p></li> <li id="fn:6"><p>"Malaysia Today article". Malaysia Today article. 21 July 2010. Archived from the original on 24 July 2010. Retrieved 8 August 2010. <a href="https://web.archive.org/web/20100724053805/http://www.malaysia-today.net/index.php?option=com_content&view=article&id=33258%3Around-five-bsa-tahir-was-merely-the-fall-guy&catid=22%3Athe-corridors-of-power&Itemid=100085" target="_blank">https://web.archive.org/web/20100724053805/http://www.malaysia-today.net/index.php?option=com_content&view=article&id=33258%3Around-five-bsa-tahir-was-merely-the-fall-guy&catid=22%3Athe-corridors-of-power&Itemid=100085</a> <a href="#fnref:6" class="footnote-back-ref">↩</a></p></li> <li id="fn:7"><p>"Nuclear scandal: Man 'confesses'. 20 Feb., 2004". Edition.cnn.com. 20 February 2004. Retrieved 8 August 2010. <a href="http://edition.cnn.com/2004/WORLD/asiapcf/02/20/nuclear.malaysia/index.html" target="_blank">http://edition.cnn.com/2004/WORLD/asiapcf/02/20/nuclear.malaysia/index.html</a> <a href="#fnref:7" class="footnote-back-ref">↩</a></p></li> <li id="fn:8"><p>"Malaysia Today article". Malaysia Today article. 16 July 2010. Retrieved 8 August 2010. <a href="http://www.malaysia-today.net/index.php?option=com_content&view=article&id=33134:round-three-the-bsa-tahir-story&catid=22:the-corridors-of-power&Itemid=100085" target="_blank">http://www.malaysia-today.net/index.php?option=com_content&view=article&id=33134:round-three-the-bsa-tahir-story&catid=22:the-corridors-of-power&Itemid=100085</a> <a href="#fnref:8" class="footnote-back-ref">↩</a></p></li> <li id="fn:9"><p>"Malaysia Today article". Malaysia Today article. 23 July 2010. Retrieved 8 August 2010. <a href="http://www.malaysia-today.net/index.php?option=com_content&view=article&id=33308:round-six-how-the-isa-was-used-against-bsa-tahir-to-protect-the-first-family&catid=22:the-corridors-of-power&Itemid=100085" target="_blank">http://www.malaysia-today.net/index.php?option=com_content&view=article&id=33308:round-six-how-the-isa-was-used-against-bsa-tahir-to-protect-the-first-family&catid=22:the-corridors-of-power&Itemid=100085</a> <a href="#fnref:9" class="footnote-back-ref">↩</a></p></li> <li id="fn:10"><p>"Straits Times article". News.asiaone.com. 4 March 2010. Archived from the original on 9 March 2010. Retrieved 8 August 2010. <a href="https://web.archive.org/web/20100309143635/http://news.asiaone.com/News/the%2BStraits%2BTimes/Story/A1Story20100304-202281.html" target="_blank">https://web.archive.org/web/20100309143635/http://news.asiaone.com/News/the%2BStraits%2BTimes/Story/A1Story20100304-202281.html</a> <a href="#fnref:10" class="footnote-back-ref">↩</a></p></li> <li id="fn:11"><p>"5 Japanese arrested in atom case - Asia - Pacific - International Herald Tribune (Published 2006)". The New York Times. Archived from the original on 30 May 2023. <a href="https://www.nytimes.com/2006/08/25/world/asia/25iht-japan.2596170.html" target="_blank">https://www.nytimes.com/2006/08/25/world/asia/25iht-japan.2596170.html</a> <a href="#fnref:11" class="footnote-back-ref">↩</a></p></li> <li id="fn:12"><p>Video of NHK News Bulletin Item <a href="https://www.youtube.com/watch?v=qBaGEvOBoa4" target="_blank">https://www.youtube.com/watch?v=qBaGEvOBoa4</a> <a href="#fnref:12" class="footnote-back-ref">↩</a></p></li> <li id="fn:13"><p>"US State Department release". State.gov. 12 January 2009. Retrieved 8 August 2010. <a href="https://2009-2017.state.gov/t/isn/115913.htm" target="_blank">https://2009-2017.state.gov/t/isn/115913.htm</a> <a href="#fnref:13" class="footnote-back-ref">↩</a></p></li> <li id="fn:14"><p>"Straits Times article". Straits Times article. 16 January 2009. Archived from the original on 11 November 2010. Retrieved 8 August 2010. <a href="https://web.archive.org/web/20101111054659/http://www.straitstimes.com/Breaking%2BNews/SE%2BAsia/Story/STIStory_326854.html" target="_blank">https://web.archive.org/web/20101111054659/http://www.straitstimes.com/Breaking%2BNews/SE%2BAsia/Story/STIStory_326854.html</a> <a href="#fnref:14" class="footnote-back-ref">↩</a></p></li> <li id="fn:15"><p>"DAP statement". Limkitsiang.com. 5 February 2004. Retrieved 8 August 2010. <a href="http://www.limkitsiang.com/archive/2004/feb04/lks2869.htm" target="_blank">http://www.limkitsiang.com/archive/2004/feb04/lks2869.htm</a> <a href="#fnref:15" class="footnote-back-ref">↩</a></p></li> <li id="fn:16"><p>"Bernama article". Accessmylibrary.com. 16 January 2009. Retrieved 8 August 2010. <a href="http://www.accessmylibrary.com/coms2/summary_0286-36437261_ITM" target="_blank">http://www.accessmylibrary.com/coms2/summary_0286-36437261_ITM</a> <a href="#fnref:16" class="footnote-back-ref">↩</a></p></li> <li id="fn:17"><p>"Financial Times article". Zawya.com. Archived from the original on 31 January 2016. Retrieved 8 August 2010. <a href="https://web.archive.org/web/20160131145250/http://www.zawya.com/printstory.cfm?storyid=FT1040781B2F50F8&l=000000040318" target="_blank">https://web.archive.org/web/20160131145250/http://www.zawya.com/printstory.cfm?storyid=FT1040781B2F50F8&l=000000040318</a> <a href="#fnref:17" class="footnote-back-ref">↩</a></p></li> <li id="fn:18"><p>"Weapons export arrest made in New York". The Associated Press. 20 July 2007. Retrieved 20 July 2007. <a href="https://www.usatoday.com/news/nation/2007-07-19-illegal-arms-export_N.htm?csp=34" target="_blank">https://www.usatoday.com/news/nation/2007-07-19-illegal-arms-export_N.htm?csp=34</a> <a href="#fnref:18" class="footnote-back-ref">↩</a></p></li> </ol>