Cops bust racket converting RM2.50 subsidised oil into fake used oil


GEORGE TOWN: A 51-year-old man has been arrested for allegedly converting RM2.50 subsidised packet cooking oil into fake used oil to resell at RM3.50 per kilogram.

Penang Domestic Trade and Consumer Affairs Ministry director S. Jegan said the suspect was detained following coordinated raids on three premises at 11pm on Tuesday (Aug 11).

Enforcement officers seized an estimated RM95,000 worth of goods, including 3,150kg of subsidised cooking oil. Raids on a licensed outlet registered under the suspect's name revealed 850kg of oil stored in excess of its permitted 1,000kg quota.

"The unique thing about this case is that the excess subsidised cooking oil was not meant to be supplied to the public," Jegan told reporters at the agency’s storage facility in Bukit Minyak on Wednesday (Aug 12). "He would buy the packets, cut them open, mix in colouring, and turn the oil into what would be sold as used oil."

Jegan expressed concern over the scheme, noting the growing number of collection centres for used cooking oil.

The suspect is being held under Section 20(1) of the Control of Supplies Act 1961 and Regulation 10(1) of the Control of Supplies Regulations 1974.

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