BUTTERWORTH: A diesel siphoning syndicate that used small lorries to transfer fuel into larger tankers for storage was busted less than a month into its operations.
The illegal activity was uncovered during raids under Ops Tiris 4.0 and Ops Jeriji conducted by the Domestic Trade and Cost of Living Ministry.
Two Myanmar nationals in their 20s, each driving a tanker lorry loaded with diesel, were arrested in a residential area here.
The ministry’s enforcement team seized hoses, a pump and 21,190 litres of diesel, with total seizures valued at RM327,000.
Several business-related documents were also confiscated to assist investigations, said the ministry’s Penang director S. Jegan.
“During the raid, we found two tankers being used to store diesel, with a smaller 17-tonne tanker transferring fuel into a larger 28-tonne tanker in a residential area.
“Over the course of our month-long surveillance, we observed smaller lorries being used to transfer diesel into larger tankers.
“We believe the fuel was intended to be transported out of Penang to other states or even overseas, depending on price differences,” he said here yesterday.
Jegan said that their inspections revealed the premises failed to produce the necessary licences or permits to handle controlled goods.
“We are still identifying the masterminds behind this racket.
“We have opened an investigation paper under Section 21 of the Control of Supplies Act 1961 (Act 122) for possession of controlled goods with intent to commit an offence,” he said.
Jegan added that individuals convicted under the Act face fines of up to RM1mil and up to RM3mil for subsequent offences, imprisonment of up to three years, or both.
Companies, meanwhile, may be fined up to RM2mil, or up to RM5mil for subsequent offences.
He said the ministry would continue to intensify monitoring and enforcement to curb the diversion of subsidised goods.
“Those with information on such activities are urged to lodge complaints through the ministry’s official channels,” he said.
