KPDN To Step Up Cooperation With Other Agencies To Curb Subsidy Leakage

MIRI, Aug 26 (Bernama) -- The Domestic Trade and Cost of Living Ministry (KPDN) will step up cooperation with related agencies to curb the leakage of controlled subsidised goods.

Its Minister Datuk Armizan Mohd Ali said this includes tackling smuggling activities and preventing the misappropriation of subsidies to non-eligible sectors.

Commenting on the subsidised diesel smuggling case in Sibu, which led to the arrest of several individuals yesterday (Sunday), he said that the operation was led by the Malaysian Anti-Corruption Commission (MACC) in collaboration with the KPDN Enforcement Division.

Armizan said the investigation of the case was carried out by the MACC under the MACC Act 2009 and the Penal Code, in addition to the Control of Supplies Act 1961, which is regulated by the KPDN.

“KPDN will work closely with MACC to ensure a thorough investigation is conducted, so that those found guilty of misappropriation (of subsidies) are charged in court,” he told a press conference here today.

Earlier, Armizan attended a meeting at the KPDN office here addressing the RON97 petrol supply issue for Brunei/Indonesia tourist vehicles.

According to him, the investigation will cover the entire chain of a large diesel smuggling syndicate, believed to have been active since 2012, including probing diesel supply sources such as petrol stations and identifying those who colluded to provide protection.

Yesterday, five individuals were arrested in connection with a suspected syndicate involved in the embezzlement and misappropriation of subsidised diesel belonging to a fishermen’s association.

MACC chief commissioner Tan Sri Azam Baki said that the three men and two women, aged between their 30s and 60s, were detained on suspicion of being involved in a syndicate that has amassed profits of up to RM400 million by selling subsidised diesel meant for fishermen to external parties at a set price.

Azam said that a raid on an oil storage depot in Sungai Bidut was conducted in collaboration with KPDN.

According to him, the raid on an oil storage depot in Sungai Bidut, conducted under the integrated operation codenamed Ops Liter with KPDN, resulted in the seizure of two barges, 30 oil tanks containing 1.6 million litres of diesel, and RM3.7 million in cash.

Meanwhile, Armizan said that Ops Tiris 3.0, launched on Jan 1, now also targets controlled goods and subsidised items, including RON95 petrol, 1 kg polybag packets of cooking oil, liquefied petroleum gas (LPG), refined white sugar, and wheat flour.

He said that, as of Aug 24, the operation had recorded 642 cases involving the seizure of 5.8 million litres of subsidised diesel worth RM63.3 million, following inspections of 12,389 premises nationwide, which led to the arrest of 304 suspects for further investigation.

-- BERNAMA