KUALA LUMPUR, July 16 — Top Glove Corporation Bhd (Top Glove) said the US Customs and Border Protection (CBP) has placed a detention order effective yesterday on disposable gloves manufactured by two of its subsidiaries, Top Glove Sdn Bhd and TG Medical Sdn Bhd.
It is reaching out to the CBP for a better understanding and speedy resolution of the issue, it said.
“There is a possibility this may be related to foreign labour issues, which we have already resolved, save for one more issue with regard to retrospective payment of recruitment fees by our workers to agents prior to January 2019, without our knowledge.
“However, Top Glove has already been bearing all recruitment fees since January 2019 when our Zero Recruitment Fee Policy was implemented,” it said in a filing with Bursa Malaysia today.
Top Glove said it was in the best interest of all parties to come to a solution expeditiously so that the consignments could reach the parties that direly need the gloves in the face of Covid-19.
“Over the past few months we have been working on this issue, which involves extensive tracing, to establish the correct amount to be paid back to our workers on behalf of the previous agents.
“We estimate the total amount to be about RM20 million to RM50 million,” it said.
Meanwhile, TOPGLOV shares trading was halted at 2.30 pm today and was supposed to resume at 3.30pm. However, Bursa Malaysia Securities said stock markets halted at 3.30pm today due to a technical issue.
— Bernama
