Ministry busts subsidised diesel syndicate in Kwasa Damansara, seizing 9,000 litres and arresting three suspects
KUALA LUMPUR: The Ministry of Domestic Trade and Cost of Living (KPDN) Kuala Lumpur has busted a syndicate involved in the misappropriation of subsidised diesel, believed to have caused subsidy leakages of about RM30,000 per day, following a raid on an illegal storage facility in Kwasa Damansara here today.
During the operation, enforcement officers seized 9,000 litres of subsidised diesel and various assets estimated to be worth RM265,000.
Three men aged between 30 and 48, including two Bangladesh nationals, were arrested to assist in the investigation.
Kuala Lumpur KPDN director Mohd Sabri Seman said 24 enforcement personnel were involved in the operation which was carried out based on intelligence, as well as information and complaints from the public.
“Checks at the location led to the seizure of about 9,000 litres of diesel believed to have been illegally stored in violation of the law. Also seized were a tanker lorry, two bonded lorries, seven Intermediate Bulk Container (IBC) tanks, seven hoses and pipes, and two diesel pumps,” he said in a press conference after the raid today.
Mohd Sabri said the syndicate is believed to have purchased subsidised diesel in small quantities from several petrol stations around the capital before stockpiling it at the facility to be resold to industrial buyers in Kuala Lumpur, Selangor and Negeri Sembilan at market prices.
He said the syndicate used different individuals at each stage of the operation chain to evade detection by authorities.
“Preliminary investigations found that the syndicate has been operating for about three months at the rented premise,” he said.
The case is being investigated under Section 21 of the Control of Supplies Act 1961 read together with Regulation 3(1) of the Control of Supplies Regulations 1974 for dealing with controlled goods without a valid licence or permit.
If convicted, corporate entities may be fined up to RM2 million, while individuals face fines of up to RM1 million or a maximum jail term of three years, or both.
He also urged the public to continue providing information on the misappropriation of controlled goods through KPDN’s official complaint channels to help curb such activities.
