SEBERANG PERAI, Oct 11 — The Penang Customs Department recently uncovered a fake liquor processing lab in Kampung Valdor, seizing RM334,133.37 worth of alcohol, including unpaid tax.

State Customs Department Director Datuk Roselan Ramli revealed that the lab, operated by Nepalese nationals, was situated in a rundown wooden house in a forested area near Sungai Jawi.

"A team of our officers raided the house at about 11:20am on September 9, finding 6,621 bottles of liquor, equivalent to 2,104.41 litres, along with empty bottles, caps, various liquor labels, a bottle-capping machine, fake Customs duty stamps, and a modified drum for storing the fake liquor,” he told reporters today.

The syndicate, which had been operating for at least three months, was using frogs as alarms to warn of approaching strangers.

"There were four ponds of frogs on the path to the premises, and when our team approached, the frogs made loud noises, allowing the syndicate members to flee before we could apprehend them,” he said.

It is also believed the frogs were being reared for consumption, in addition to serving as alarms.

Roselan indicated that the fake liquor produced by the syndicate had likely already been distributed to unsuspecting sundry shops.

"We believe the fake liquor is already in the market,” he said, adding that the counterfeit alcohol could be dangerous since its ingredients and spirit content are unknown.

"It is difficult for the public to tell the difference between genuine and fake liquor, so we advise buyers to purchase alcohol only from Customs-licensed premises.”

Roselan noted that the lab was unlicensed under Section 20(1) of the Excise Act 1976.

"We have identified the local owner of the premises and are tracking down those responsible for producing the fake liquor,” he said. The investigation is ongoing under Section 74(1)(f) of the Excise Act 1976 and Section 6 of the Law Reform (Eradication of Illicit Samsu) Act 165.

Meanwhile, in a separate operation at 11 a.m. on October 2, customs officers raided a factory store in Simpang Ampat and seized 6,022.08 litres of untaxed beer.

Roselan stated that four men, including a foreigner, were arrested during the raid. The seized beer, along with taxes, was valued at RM123,931.01.

Other items seized included a Mitsubishi Fuso lorry used to transport the beer.

"The four men detained, aged between 28 and 39, are store workers,” Roselan said, adding that the beer was believed to have been distributed in bulk using the lorry to avoid detection.

The case is being investigated under Section 135(1)(d) of the Customs Act 1967 and Section 74(1)(a) of the Excise Act 1976.

"We encourage the public to work with us to combat smuggling activities, as these not only result in financial losses for the country but also pose health risks,” Roselan said.