SANDAKAN: The government must tighten enforcement to prevent the leakage of public funds involving the distribution of fuel subsidies in Sabah, said Sedco group chairman Datuk Masiung Banah.
He warned that poor governance and misconduct pose a high risk during the global supply crisis, particularly involving subsidies for RON95 petrol, diesel, and liquefied petroleum gas (LPG). Without thorough enforcement, subsidised fuel intended for the people risks being smuggled to neighbouring countries.
Masiung cited two recent diesel smuggling cases in Tawau – one last Sunday and another in early April – involving over 40,000 litres of subsidised diesel worth more than RM1.17 million. He said these cases should serve as a clear warning to the authorities.
He urged the Marine Police, the Ministry of Home Affairs and Public Order, and maritime agencies to increase enforcement personnel, patrol boats, and drones, especially along rat routes near the country’s borders. He added that officers stationed at entry points must also be scrutinised for possible abuse of power or failure to follow standard operating procedures.
Meanwhile, the Enforcement Agency Integrity Commission (EAIC) has identified three main risk factors contributing to leakage during the global supply crisis, following geopolitical conflicts in West Asia. According to EAIC, the most critical issue at border areas is an internal network involving a small number of frontline officers.
Other challenges include the region’s vast sea area and thick mangrove swamps, which contain numerous illegal rat routes that make enforcement difficult. Masiung noted that subsidised fuel and cooking oil are far cheaper in Malaysia than in neighbouring countries, attracting smugglers seeking huge profits.
High demand for these goods in Indonesia and the Philippines also drives smuggling from Sabah and Sarawak. The briefing was delivered by Sandakan Municipal Council President Datuk Walter Kenson and attended by Sabah’s Tourism and Environment Minister Datuk Jafri Ariffin, State Secretary Datuk Safar Untung, and other state and federal officials. – James Leong
Masiung warned that without thorough enforcement, subsidised fuel intended for the people risks being smuggled to neighbouring countries
