KUALA LUMPUR (Aug 28): Top Glove Corp Bhd said today that the independent audit over its labour practices has been completed, as part of its ongoing efforts to resolve the ban on exports of its products to the US.

“The board of directors of Top Glove wishes to update that the independent consultant appointed to verify labour practices at its manufacturing facilities and accommodation has completed the intended verification work,” it said in a statement today.

“The independent audit entails virtual interviews of about 1,100 of the company’s migrant workers across various locations and also addresses the relevant areas of concern identified by the US Customs and Border Protection (CBP).

“The audit report is expected to be available within 10 days, for onward submission to the US CBP,” said Top Glove in a statement today.

On July 15, US customs placed a detention order on disposable gloves manufactured by two Top Glove’s subsidiaries — Top Glove Sdn Bhd and TG Medical Sdn Bhd — because of retrospective payment of recruitment fees by its  workers to agents prior to January 2019.

The group has paid its first remediation payment of RM4.4 million, out of an estimated RM53 million — subject to US CBP finalisation.

The ban, which has lasted more than six weeks, accounted for 12.5% of Top Glove’s total sales. The US is a major market accounting for 25% of group sales volume.

“Top Glove is appreciative of US CBP’s good and active engagement and is committed to carrying through its remediation plans. The Company looks forward to an expeditious upliftment of the Withhold Release Order,” it said.

Shares of Top Glove closed 12 sen or 0.45% lower at RM26.28, valuing the group at RM71.19 billion Year to date, the counter has risen 459%.

Edited by Kathy Fong