PETALING JAYA: The Domestic Trade and Cost of Living Ministry has dismantled a syndicate involved in the illegal transfer of subsidised liquefied petroleum gas (LPG) intended for household use, following a raid at an industrial premises in the Sungai Puloh Light Industrial Area in Klang on May 21.
Three men, including a Malaysian, aged between 25 and 47 were arrested during the early morning operation.
Authorities seized an estimated 11,314kg of LPG, with a total value of the confiscated goods amounting to about RM300,000.
Ministry enforcement director-general Datuk Azman Adam said the operation followed a month-long intelligence effort. Preliminary inspections showed that the premises belonged to a licensed LPG wholesale and distribution company.
“However, after operating hours, it was turned into a place for decanting activities, which involves the transferring of subsidised LPG from 14kg cylinders for household use into 50kg capacity cylinders for industrial use by using specially designed connection hoses,” he said in a statement yesterday.
Azman said investigations are being carried out under the Control of Supplies Act 1961 for possession of controlled goods with the intent to commit an offence.
Individuals convicted under the Act may face fines of up to RM1 million or three years’ imprisonment. Repeat offenders risk fines of up to RM3 million and jail terms of up to
five years.
Companies found guilty may be fined RM2 million for a first offence and up to RM5 million for subsequent violations.
“The company will also be investigated under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (Act 613) for allegedly laundering profits from the illegal sale of subsidised LPG.
Convictions under Act 613 carry penalties of up to 15 years in prison and fines amounting to either five times the value of the illicit proceeds or RM5 million, whichever is higher.
