The leakage of subsidised diesel, which was much cheaper than the pump price in neighbouring countries, was cited as a main reason behind the implementation of targeted diesel subsidy, which started in June. While pump prices have risen, subsidised diesel is still in the market, reserved for logistics and groups such as fishermen.
Subsidised diesel for fishermen has been maintained at RM1.65 per litre, which means that smugglers stand to gain big should they get hold of this black gold. How big? Malaysian Anti-Corruption Commission (MACC) says that it has arrested five individuals in connection with a suspected syndicate involved in subsidised diesel embezzlement and misappropriation of diesel, seizing 1.6 million litres of diesel and RM3.7 million in cash in the process.
The fuel belonged to a fishermen’s association. The syndicate is also believed to have bribed enforcement officers in Sibu, Sarawak to prevent any action being taken against them, Bernama reports.
MACC chief commissioner Tan Sri Azam Baki said in a statement that three men and two women, aged between their 30s and 60s, were detained at the MACC branch office in Sibu, and that a raid on an oil storage depot in Sungai Bidut was conducted in collaboration with the ministry of domestic trade and cost of living (KPDN).
“The detainees include four petrol station operators, believed to be masterminding the diesel smuggling activities, and an intermediary suspected of handling transactions with external buyers.
“As a result of this operation, the MACC seized approximately RM3.7 million in cash, two barges, and 30 tanks that can hold around 1.6 million litres of diesel at the depot. All the seized diesel will be handed over to the ministry of domestic trade and cost of living (KPDN) for resale to licensed dealers,” Azam said.
He added that the suspects will be brought to the Sibu Magistrates Court for a remand application and the case investigated under Section 16(b)(B) and Section 18 of the MACC Act 2009, as well as Section 471 of the Penal Code and the Control of Supplies Act 1961.
Azam said that through investigations and intelligence conducted by MACC, it is believed that the syndicate has been operating since 2012, and has amassed profits of up to RM400 million by selling subsidised diesel meant for fishermen, to external parties at a set price by transferring diesel from the tanks to barges moored at the depot. The diesel from these barges is then believed to be transferred to ships owned by buyers from foreign countries during the night.
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