KUCHING, Aug 12: Some 25 companies across Malaysia have had their subsidised cooking oil monthly quotas withdrawn as they were found to be repackaging subsidised cooking oil to earn extra profit.
Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) Enforcement Division deputy director Shamsul Nizam Khalil said any companies suspected of abusing subsidies on cooking oil and liquefied petroleum gas (LPG) will have this privilege suspended while investigations are being conducted.
He said companies were caught transferring subsidised cooking oil from the original one kilogramme (kg) into two, three and five kg bottles, while some transferred subsidised LPG from 14kg barrels to industrial-use barrels for sale at market prices with high profits.
“Such crimes will have huge impacts on the supply of goods in the market for the consumption of Malaysians and at the same time incur millions of ringgit in losses for the government in the provision of subsidised goods aiming to alleviate the cost of living burden of the people.
“KPDNHEP will treat any companies found to be involved in such malpractices very seriously, especially those licensed and provided with quotas for the packaging and bottling of controlled goods,” he said in a statement today.
Shamsul added investigations will be conducted in accordance with Section 21 of the Control of Supply Act 1961 for possession of controlled goods in a situation that raises reasonable suspicion, under Regulation 3(1) of the Control of Supplies Regulations 1974.
He noted that other offenses including the transfer of subsidised cooking oil in unlicensed places will also be investigated under Section 20(1).
“If found guilty, a single person can be fined not more than RM1 million or face imprisonment of not more than three years or both.
“Meanwhile, the company can be fined not exceeding RM2 million and those responsible may face imprisonment of not more than three years or both,” he added. — DayakDaily
