On 4 February 2004, the New York Times carried a story claiming that SCOPE supplied nuclear components to Libya as part of a rogue network masterminded by Pakistani atomic weapons supremo Dr. A. Q.
Shah issued a statement as well, saying: "In reference to the lifting of the sanctions imposed, I am grateful to all who have helped, guided and supported Scomi Group and I for the past few years, in particular to the Government of Malaysia and all the agencies.
In 2002, Scomi CEO, Shah Hakim Zain, was appointed director of SCOPE along with Mansor Tahir and Hilmy Zaini Zainal.
Tahir, had confessed to helping Dr Khan sell nuclear secrets and supplies to Iran and Libya.
[7] 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 uranium enrichment program.
[10] On 26 August 2006, the CEO and four executives of the Mitutoyo Corporation were arrested by Tokyo Police in connection with the sale of equipment to Scomi, for the production of the centrifuge.
[12] 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, Scomi CEO, Shah Hakim Zain and SCOPE GM, Shamsul Bahrin, for their involvement in Dr Khan's nuclear proliferation network.
Following the breaking of the SCOPE scandal, the Malaysian government promised to tighten controls on exports of weapons-related equipment.