BUKIT MERTAJAM: The Penang branch of the Domestic Trade and Cost of Living Ministry has uncovered a subsidised cooking oil misappropriation syndicate after raiding an illegal storage facility in Seberang Perai Selatan near here Thursday (March 13), seizing goods worth RM129,869.
Its director S. Jegan said six men were arrested while transferring subsidised cooking oil from 1kg packets into intermediate bulk containers.
Authorities also seized 2,300kg of oil in its original packaging, 9,500kg in tanks, and 750kg in blue plastic drums.
The raid followed two weeks of intelligence work after public complaints about suspicious activities at the premises.
The ministry had tracked a syndicate-owned lorry transporting subsidised oil from various locations in the state before delivering it to the illegal storage site.
"Investigations revealed that the owner of the premises failed to produce the necessary licences or permits to store controlled goods. Numerous empty plastic packets from the repackaged subsidised cooking oil, were also found," he told a press conference at Bukit Minyak here Friday.
The syndicate, believed to have been operating for a year, purchased subsidised oil at RM2.50 per kg and sold it to industries for RM4, significantly lower than the market price of RM5.
"The oil supply was sourced from four repackaging companies, three in Penang and one in Kedah. The ministry is investigating whether these companies were directly involved in the operation.
"The syndicate took advantage of Ramadan by transferring the oil into bulk container tanks and drums during breaking of fast hours to avoid detection. The illegal storage site was also located far from the main road.
"As soon as the oil arrived at the storage facility, workers immediately cut open the packets and transferred the contents into larger containers to conceal the misappropriation," he said, adding that the owner of the premises has been identified.
The case is being investigated under the Control of Supplies Act 1961 and the Control of Supplies Regulations 1974.
The ministry is also tracking buyers who purchased the misappropriated cooking oil from the syndicate.
Jegan urged the public to continue providing information to help curb controlled goods misappropriation.
He added that the government supplies 3,084 tonnes of subsidised cooking oil in Penang each month, but such activities make it harder for consumers to access the supply. - Bernama
