The Ministry of Domestic Trade and Cost of Living (KPDN) has seized 6.4 tonnes of subsidised packet cooking oil following raids on two warehouses in Shah Alam that uncovered a syndicate allegedly abusing controlled goods for profit.
KPDN Enforcement Director-General Datuk Azman Adam said the operation, carried out under Ops Tiris 4.0 (Integrated), targeted warehouses in Bandar Pinggiran Subang and Jalan Bakti, Shah Alam, which were believed to be used to store subsidised cooking oil.
Investigators discovered a large quantity of subsidised cooking oil packets that were allegedly being removed from their original packaging before being sold to used cooking oil wholesalers.
“The syndicate’s modus operandi was to misuse subsidised controlled goods to generate illegal profits,” Azman said in a statement on Friday.
Initial investigations also found that the warehouse operators failed to produce valid licences or documents authorising the storage and trading of controlled goods.
Acting under Section 10(1)(b) of the Supply Control Act 1961, enforcement officers seized approximately 6,426 kilograms of subsidised packet cooking oil, 13 intermediate bulk container (IBC) tanks, four storage tanks, six drums, three electric pumps and funnels, connecting hoses, a rigid lorry, oil packet-cutting equipment, packaging boxes and several mobile phones.
The total value of the seized items is estimated at RM129,874.50.
Six men in their 30s were also arrested to assist investigations, comprising one Malaysian and five foreign nationals.
The case is being investigated under Section 21 of the Supply Control Act 1961, read together with Regulation 3(1) of the Supply Control Regulations 1974, for allegedly dealing in controlled goods without a valid licence.
Authorities are also investigating whether other individuals or companies were involved in the operation.
Those convicted face fines of up to RM1 million for a first offence and RM3 million for subsequent offences, or imprisonment of up to three years, or both. Companies may be fined up to RM2 million for a first offence and RM5 million for repeat offences.
Azman said that since Ops Tiris 4.0 (Integrated) was launched on March 16, enforcement authorities have successfully busted 137 cooking oil smuggling and misuse cases, involving the seizure of 165,568 kilograms of cooking oil worth RM615,936.02.
Sabah recorded the highest number of cases with 36, while KPDN Putrajaya recorded the largest quantity seized, with 55,445 kilograms across four cases.
Azman also urged members of the public with information on the misuse of subsidised or controlled goods to report it to KPDN so that enforcement action can be taken.
