PUTRAJAYA: Domestic Trade and Cost of Living has busted a subsidised cooking oil misappropriation syndicate through a series of operations known as "Ops Tiris 3.0" with cooking oil subsidy leaks estimated to be worth RM20mil.

Ministry enforcement director-general Datuk Azman Adam said that the irregularities were linked to three subsidised cooking oil packaging companies in Perak, and wholesale companies in Johor and Selangor.

"The misappropriation chain began with a subsidised cooking oil refinery in Ipoh, Perak, which supplied 550 metric tonnes of cooking oil per month to three packaging companies in Perak. After packaging, these companies were supposed to distribute the cooking oil to the registered retailers," he explained, during a press conference on Wednesday (Aug 21).

"What happened was that these three companies conspired to package only a small portion of the cooking oil they received from the refinery, distributing it to the registered retailers, while the majority of the oil was diverted to wholesale companies in Selangor and Johor," he added.

He said that the wholesale companies in Selangor and Johor then bottled the subsidised cooking oil, and sold it in the market at the price of non-subsidised bottled cooking oil.

Following that, a coordinated raid was conducted on Aug 9, involving the cooperation of ministry offices in Putrajaya, Perak, Selangor, and Johor and the operation led to the arrest of two local men aged 20 and 30.

The two men were employees of a Johor-based company and were detained to assist in the investigation.

In addition to cooking oil, authorities seized several business documents, including purchase and sales invoices, cooking oil subsidy claim documents under the Cooking Oil Price Stabilisation Scheme and RM163,000 in cash as well as various equipment and vehicles used in the illegal activities.

Azman said that investigation papers have been opened, under the Control of Supplies Act 1961 (Act 122), to identify other individuals or companies involved in the misappropriation of subsidised cooking oil.

Additionally, all the companies involved are also being investigated under the Anti-Money Laundering, Anti-Terrorist Financing and Proceeds of Unlawful Activities Act 2001. This investigation aims to detect, freeze, seize, and ultimately forfeit any income or assets generated from the illegal misappropriation of subsidised cooking oil.

He said that the misappropriation activity had caused a disruption in the supply of subsidised cooking oil in the local market.

"As a firm measure, the ministry has decided to suspend the quotas of the three packaging companies involved, to immediately stop the leakage, and prevent further losses to the government,” he added. - Bernama

https://www.thestar.com.my/news/nation/2024/08/21/domestic-trade-ministry-busts-cooking-oil-misappropriation-worth-rm20mil