KPDN raids illegal storage, seizes 59,500 liters of subsidized diesel

KUALA LUMPUR: An illegal storage facility used for keeping subsidized diesel was raided by the Ministry of Domestic Trade and Cost of Living (KPDN) on Tuesday.

According to Sinar Harian, KPDN’s Director of Enforcement, Azman Adam, the raid, conducted under Ops Tiris, involved a team from KPDN Selangor and Putrajaya in collaboration with the Special Branch of the Selangor Contingent Police Headquarters (IPK Selangor), starting around 8 PM.

“The raid was carried out following intelligence gathered by KPDN before the operation was launched,” he said in a statement.

Azman revealed that initial information indicated the syndicate used the premises as an illegal storage for diesel intended for local fishermen under the supervision of the Fishermen’s Association (PNK).

He explained that further inspections of the premises led to the discovery of approximately 59,500 liters of diesel suspected to be involved in illicit activities.

“In addition to the diesel, a tanker truck, connecting pipes, oil, and several related documents and other equipment were seized for further investigation, with the total value of the seizure estimated at RM200,000.

Azman noted that six individuals aged between 30 and 50 years old were arrested to assist in the investigation.

“An investigation paper has been opened, and further inquiries are being conducted under the Supply Control Act 1961 [Act 122] to identify individuals or companies involved in this activity and the distribution chain of the diesel,” he added.

He emphasized that KPDN warns all individuals or companies involved to comply with the established regulations.

He said those found guilty could face action under the Supply Control Act 1961 [Act 122], with fines up to RM1 million, and for subsequent offenses, fines up to RM3 million for individuals or imprisonment up to three years, or both.

“For companies, if found guilty, fines can reach up to RM2 million, and for subsequent offenses, up to RM5 million,” he added.

Additionally, companies will be investigated under the Anti-Money Laundering, Anti-Terrorism Financing, and Proceeds of Unlawful Activities Act 2001 (AMLATFPUAA 2001) [Act 613], for money laundering offenses to detect, freeze, seize, and ultimately forfeit any income or property generated from the illegal diesel activities.

If convicted under Act 613, the penalties include imprisonment for up to 15 years and a fine of at least five times the amount or value of the illegal activity or RM5 million, whichever is higher.

In this regard, KPDN is actively conducting ongoing operations to combat diesel smuggling.

Azman reported that 11,239 inspections have been carried out nationwide from January 1 to July 30.

For diesel fuel alone, 621 cases have been generated with a total seizure value of RM12.996 million, and 292 individuals have been arrested during the same period.

“The Ministry wishes to remind and warn all parties to adhere to the regulations and refrain from engaging in any smuggling of subsidized controlled goods, especially diesel, to avoid strict legal action,” he said.