Govt cripples subsidised cooking oil scam syndicate

 

KPDNHEP Putrajaya Deputy Director of Enforcement (Operations) Shamsul Nizam Khalil said the syndicate’s activities had also led to a cooking oil supply shortage. - STR/NURUL AMANINA SUHAINI

PASIR GUDANG: The Domestic Trade and Consumer Affairs Ministry (KPDNHEP) busted a syndicate siphoning subsidised cooking oil and selling it at market price with losses estimated at RM15 million.

The scam was unearthed during a raid at Jalan Sagai 6, Taman Pasir Putih, factory here today.

KPDNHEP Putrajaya Deputy Director of Enforcement (Operations) Shamsul Nizam Khalil said the syndicate's activities had also led to a cooking oil supply shortage.

During the 2am raid, KPDNHEP Putrajaya with the help of its Johor Baru team detained 15 men including eight foreigners from Nepal and Bangladesh aged 25 to 45 years old.

"Initial investigation and intelligence for a month found the syndicate sourcing the cooking oil from legitimately licensed factories in the Klang Valley, Perak and Kedah before transporting it here.

"The syndicate has been transferring subsidised one-kilogram cooking from polybag packets into a grinding machine before pumping it into a 1,000-litre tank.

The Domestic Trade and Consumer Affairs Ministry (KPDNHEP) busted a syndicate siphoning subsidised cooking oil and selling it at market price with losses estimated at RM15 million. - STR/NURUL AMANINA SUHAINI

"The company has been operating for the last six months siphoning between 500,000 to one million packets for six months.

"The price of each subsidised cooking oil (polybag packet) is RM2.50 and they might have got it cheaper.

"KPDNHEP suspects this is for export and is the first and largest haul this year involving siphoning of subsidised cooking oil," he said at a press conference at a factory here today.

So far 15 brands of cooking oil were reportedly utilised by the syndicate in its operations.

"KPDNHEP has identified companies involved in buying the cooking oil using legitimate wholesale licences.

"The case is being investigated under Supply Control Act 1961 and upon conviction can be fined up to RM1 million or jailed three years or both for a first offence and subsequently fine not more than RM3 million or jail maximum five years or both.

"For organisation or corporation, they can be fined up to RM2 million for a first offence and RM5 million for subsequent offences.

"KPDNHEP will also open another investigation paper under Anti-Money Laundering Act (AMLA) 2001 to see in the angle of financial crime apart from the involved packing companies," he added. - NST