Subsidised Diesel Diversion Scheme Using Fleet Cards Uncovered

RAWANG: A scheme involving the purchase of subsidised diesel from several nearby petrol stations using fleet cards before illegally transferring and storing the fuel at a warehouse here was uncovered during a raid on Sunday.

The raid, conducted at approximately 10.30 am under Ops Tiris 4.0 (Integrated), resulted in the seizure of 11,900 litres of subsidised diesel, with the total value of seized items amounting to RM82,482.

Selangor Ministry of Domestic Trade and Cost of Living (KPDN) Director Muhamad Hanif Asa’ari said the operation was carried out by KPDN Selangor enforcement officers in collaboration with the Royal Malaysia Police (PDRM).

He said the raid on an unnumbered warehouse followed intelligence gathering and surveillance of suspected subsidised diesel diversion activities in the area.

“During the raid, we seized 11,900 litres of subsidised diesel along with various logistical assets believed to have been used in the illegal activities.

“Among the items seized were a tanker lorry, a bonded lorry, 12 additional intermediate bulk containers (IBC), three sets of connecting rubber hoses and a suction pump,” he said in a statement on Sunday.

He said two Malaysian men, aged 29 and 68, were also detained to assist in investigations.

The two men were believed to have been working as a warehouse caretaker and a tanker lorry driver, respectively.

Muhamad Hanif said the syndicate’s modus operandi involved the falsification and misuse of fleet cards to obtain subsidised diesel supplies.

“Third parties would purchase subsidised diesel from several nearby petrol stations using fleet cards before transferring the fuel directly into the buyers’ lorries.

“The collected diesel would then be transported to and stored at an illegal warehouse in Rawang before being pumped into tanker lorries for delivery and sale to industrial customers or other buyers,” he said.

He said an investigation paper had been opened under the Control of Supplies Act 1961 (Act 122) to identify the individuals or companies involved, including those within the diesel distribution chain.

“The case is also being investigated under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (Act 613).

“Individuals convicted under Act 122 may face a fine of up to RM1 million, imprisonment of up to three years, or both, for a first offence,” he said.

For subsequent offences, he explained, individuals could face fines of up to RM3 million, imprisonment of up to five years, or both.

“Companies or statutory bodies may be fined up to RM2 million for a first offence and up to RM5 million for subsequent offences,” he said.

He stressed that KPDN Selangor would not compromise with any party involved in the diversion of controlled and subsidised goods.

“KPDN Selangor will continue deploying enforcement personnel under Ops Tiris 4.0 (Integrated) to curb these illegal activities and safeguard the country’s subsidy funds.

“Members of the public with information regarding the diversion of controlled and subsidised goods can lodge complaints via WhatsApp at 019-848 8000, the Call Centre at 1-800-886-800, email at e-aduan@kpdn.gov.my, or through the Ez ADU KPDN application,” he said.

Sinar Harian