BUKIT MERTAJAM: The Penang Domestic Trade and Cost of Living Ministry has uncovered a syndicate misappropriating subsidised cooking oil operating from a storeroom here.
Penang KPDN director RS Jegan said the syndicate transferred 1kg packet cooking oil into 17kg industrial drums.
He said the activity was exposed after a joint raid with the Police Intelligence Branch Battalion 2 and the General Operations Force Kulim on Tuesday at about 3.30pm.
He said checks found the syndicate cut open 1kg polybag packages before transferring the oil into industrial drums using specialised equipment.
“This action is believed to be intended to alter the original form of the controlled item for illegal resale or unauthorised storage,” he said on Wednesday (Oct 8).
Further inspection found 4,760 kilogrammes of cooking oil in 1kg packets, 510 empty 17kg drums and five empty 200‑litre drums.
These were believed to be used to store the transferred oil.
Also seized were two metal pumps, one plastic pump, two plastic funnels and two scissors used to cut the plastic packs.
The raiding team also found 510 empty boxes and a lorry suspected to be used to transport the controlled goods.
All items were seized for further investigation, with the seizure valued at RM37,450.
Jegan said initial investigations found the storeroom had operated for three months without a valid licence or permit.
He said this was required by law to possess and manage scheduled controlled goods.
“Two local men at the location were also detained to assist investigations,” he added.
The ministry opened an investigation under Section 21 of the Control of Supplies Act 1961 concerning the possession of controlled goods with intent to commit an offence.
If convicted, individuals may be fined up to RM1,000,000, and for subsequent offences up to RM3,000,000 or jailed for up to three years, or both.
For companies, fines can reach RM2,000,000, rising to RM5,000,000 for subsequent offences.
