KPDNHEP busts syndicate for misappropriation of subsidised diesel
23 Aug 2022 09:13am
Jegan (two from left) shows an empty plastic bin with a capacity of 1,000 litres that has been modified in the lorry. - Photo: Penang KPDNHEP
In the raid at 9.45 am, the Penang KPDNHEP seized 171,000 litres of subsidised fuel from a store situated in an isolated location which is a distance away from public areas and roads. The reason being the syndicate wants to conceal its activities from the authorities.
Penang KPDNHEP director S. Jegan said acting on information and surveillance carried out over the last four days, his team monitored a suspicious looking 10-tonne lorry early this morning and managed to track it down to the store.
He said that initial investigations of the scheduled controlled goods store revealed that there was an element of fraud before the discovery of the activities of misappropriation of controlled goods. The owner of the premises there declared that only 35,000 litres of subsidised diesel was stored and which was still within the allowed limit.
"The inspection of the lorry found that it had been modified and had eight units of empty plastic barrels with a capacity of 1,000 litres each to fill fuel. The store with a controlled goods licence was allowed to store up to 100,000 litres of diesel, but the inspection found that there were 171,000 litres of diesel (which exceeded the set limit) estimated to be worth RM342,180.
"Prior to that, the owner of the premises made a false declaration stating that he only had 35,000 litres of diesel, but our inspection found 171,000 litres of diesel stored in the premises, which was already over the limit," he told reporters after conducting an inspection at the store here today.
Jegan said that the premises, which has been operating since 2020, was raided for the second time by his team and based on investigations, the syndicate bought subsidised diesel at petrol stations across the state using modified lorries.
"We found that the modus operandi was to carry out these fraudulent activities well past midnight, namely between 1 am and 3 am. They buy subsidised diesel at such hours to avoid being detected by the authorities," he said.
He said further inspection found that there were five 'skid tanks', two bonded lorries, two cargo lorries, and five tankers in the store which were all worth RM532,180 including the subsidised diesel.
Jegan said his team also arrested four local men, aged 30 to 40, to assist investigations and that the case was being investigated under the Control of Supplies Act 1961.
"The raid is the biggest seizure involving misappropriated subsidised diesel in Penang so far and we do not rule out the possibility of the fuel being sold in the industrial market at a higher price," he added. - BERNAMA
