KOTA KINABALU: In a major enforcement operation, the Ministry of Domestic Trade and Cost of Living (KPDN) Sabah has dismantled an illegal syndicate involved in the misappropriation of subsidized diesel.
The raid, conducted on July 15 at an unlicensed storage facility in Kampung Sindaanan, Penampang, led to the seizure of 16,180 litres of diesel, an Isuzu Trooper 4WD vehicle, and smuggling equipment, with an estimated total value of RM53,527.
Acting on public tip-offs and a week-long surveillance operation, KPDN enforcement officers raided the premises at 6.53pm, detaining a local man in his 30s believed to be the mastermind. Investigations revealed that the location operated without a valid permit to store or trade controlled goods.
The suspect is being investigated under Section 21 of the Control of Supplies Act 1961 (possession of controlled goods for illegal trade), Regulation 3(1) of the Control of Supplies Regulations 1974 (operating without a license) and Section 20(1) (storing controlled goods in an unapproved facility).
Penalties upon conviction for individuals up to RM1 million fine, 3 years’ jail, or both (first offense); RM3 million fine, 5 years’ jail, or both (repeat offenders) and companies, up to RM2 million fine (first offense); RM5 million for subsequent violations.
KPDN Sabah issued a stern reminder to petrol station operators against selling subsidized RON95 and diesel to unauthorized buyers. Violators will face legal action under Regulation 21(1) and sub-regulation 12A of the Control of Supplies Regulations 1974.
KPDN Sabah’s enforcement achievements for Jan to Jul 2025 were 1,179 cases prosecuted under various trade laws involving RM22.2 million worth of goods confiscated, RM276,250 in compounds issued, 1,112 complaints received, with 92.7% resolved and 82,322 premises inspected (urban and rural).
KPDN Sabah encourages the public to help combat smuggling by reporting via: WhatsApp: 019-279 4317 / 019-848 8000, Online Portal: http://eaduan.kpdn.gov.my, Hotline: 1-800-886-800, Email: eaduan@kpdn.gov.my
“We will not tolerate any form of subsidy leakage. Offenders will face the full force of the law,” stated KPDN Sabah Director Shahril Nizam Shahidin. – James Leong
