Busted - syndicate that stole RM15mil in subsidised cooking oil

PASIR GUDANG: The Domestic Trade and Consumer Affairs Ministry (KPDNHEP) has crippled a syndicate that siphoned off RM15mil worth of subsidised cooking oil within the last six months.

Putrajaya KPDNHEP (operations) deputy enforcement director Shamsul Nizam Khalil said the syndicate's tactics were was uncovered during a raid at an industrial premises at Taman Pasir Putih here.

He added that the raid was carried out at 2am on Tuesday (May 4) involving a team of nine, after investigations had been carried out on the syndicate for about a month.

“Based on our investigation, the ministry estimated that the syndicate had (misappropriated) between 500,000 and one million packages of subsidised cooking oil a month involving a value of RM2.5mil each month.

“The syndicate will take the cooking oil from the subsidised packets and transfer it into a tank before exporting it, ” he told a press conference here on Tuesday (May 4).

Shamsul Nizam said the syndicate received its supply of 15 assoerted brands from factories and licensed suppliers from the Klang Valley, Pahang, Kedah and Perak.

He added that during the operation, KPDNHEP found 10,149 1kg packets of cooking oil and 4.5 tonnes of cooking oil inside a tank valued at RM280,000.

Shamsul Nizam also said the ministry also detained 15 suspects involving seven locals and eight foreigners between the ages of 35 and 45.

“One of them, a 35-year-old man, admitted to be a supervisor for the syndicate. The foreigners are Nepalese and Bangladeshis.

“We will also be looking into any possible links with the suppliers and factories that produced the various brands found in the operation, ” he added.

Shamsul Nizam said the case was being investigated under the Control Supply Act 1961 and also under Section 4(1) (a) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds from Illicit Activities Act 2001.

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