PONTIAN: Police here busted a syndicate that converts used engine oil into diesel fuel following a raid at a factory in Pekan Nanas here on Tuesday.
The raid was conducted by a team of personnel from Bukit Aman, Region 2 Marine Operation Force and Pontian district police about 5.30pm on June 28.
Acting Johor police chief Senior Assistant Commissioner Jalaludin Hamid said five suspects comprising two locals and three foreigners, were arrested during the raid.
"The syndicate works by buying used engine oil from workshops and factories around Johor for 30 sen a litre and then process it into diesel fuel.
"They then sell the fuel to factories to be used to run industrial engines and machines. The fuel is of low quality, so it is not used for vehicles.
"The repackaged diesel fuel is sold at RM1.80 a litre in Johor Baru, Kuala Lumpur and Port Klang," said Jalaludin in a Press conference at the factory in Kampung Jeram Batu here.
He said the syndicate is believed to have been operating for over six months.
"During the raid, also seized were 128,000 litres of used engine oil, numerous storage tanks, various equipment and two lorries. The total value of the seized items was about RM7.3 million," said Jalaludin.
He said the two local suspects, including the 48-year-old owner of the factory, have been released on bail by the Department of Environment. The three foreign suspects who are two Bangladeshi and one Indonesian nationals, have been remanded for 14 days.
"The case is being investigated under Section 34(B)(1)(A) and Section 19(A) of the Environmental Quality Act 1974 and Section 6(1)(C) of the Immigration Act," said Jalaludin.