KUALA LUMPUR: The Domestic Trade and Cost of Living Ministry crippled a subsidised diesel syndicate at its illegal storage facility in Chan Sow Lin here.
The ministry's Kuala Lumpur director Ariffin Samsudin said the operation led to the seizure of four five-tonne bonded lorries, two skid tanks with a capacity of 20,000 litres each, 40 intermediate bulk containers (IBC) tanks, five suction pumps with hoses and 44,000 litres of diesel.
The 44,000 litres of diesel is estimated to be valued at RM94,600. All the seized items, including diesel are worth about RM300,000.
Ariffin said the operation was conducted by 10 police officers on Jan 10 under Op Tiris 3.0.
Initial investigations revealed that the bonded lorries went to 20 petrol stations around Ampang, Selangor.
He said five Malaysians, comprising four lorry drivers and another employee at the storage facility were detained for investigations.
"The case is investigated under the Control of Supplies Act 1961 and Control of Supplies Regulations 1974 for alleged transactions involving controlled goods without a valid licence and the storing of controlled goods at an unlicenced location.
He said the Kuala Lumpur Federal Territory Domestic Trade and Cost of Living Ministry did not rule out a possibility that the syndicate was controlling specific areas.
"The syndicate makes subsidised diesel purchases at certain petrol stations. All their purchases are only done in the Ampang, Selangor area and do not involve other areas," Ariffin told a press conference today.
He said investigations showed the diesel in the bonded lorries would be transfered to tanker lorries at the storage facility.
The diesel is then transported outside the city.
Initial investigations also revealed that the storage facility has been operating for about a month, starting in mid-December 2023.
Ariffin said the ministry was grateful for the police and other enforcement agencies for greatly helping in enforcement, especially under Op Tiris.
He said the ministry was issuing a stern warning to anyone who violates the law, and it will not compromise with any party involved in the misappropriation of subsidised control goods, which contributes to the country's coffers.
"The price difference between subsidised diesel at petrol stations and industrial diesel exceeds RM1 per litre. This is one of the main factors that irresponsible syndicates take advantage of in order to gain profits."
Commenting further on the case, Ariffin said it has identified the syndicate's mastermind, but investigations needed to continue.
"All petrol stations are at risk because this syndicate does not focus on one specific petrol station. Logically, they would visit all petrol stations in Kuala Lumpur.
"If they go to just one station, they'll be caught after repeatedly refueling 10 times.
"That's why I say that a claim that these petrol stations were conspiring with each other, does not make sense because they would go to several stations, not just one. They might target one station two to three times," he added.
He said corporate entities can be fined up to RM2 million for the first offence and up to RM5 million for subsequent offences.
At the same time, individuals not associated with corporate entities may face a fine of up to RM1 million or imprisonment for up to three years for the initial offence, with the penalty increasing to a fine of up to RM3 million ringgit or imprisonment for up to five years, or both, for repeat offences.