4 directors nabbed for alleged misappropriation of subsidised cooking oil

KUALA LUMPUR: The Malaysian Anti-Corruption Commission (MACC) has detained four company directors for alleged involvement in a syndicate responsible for the misappropriation of subsidised cooking oil.

MACC deputy chief commissioner (operations) Ahmad Khusairi Yahaya today confirmed all four arrests.

The suspects, aged 30 to 41, were picked up in Selangor and Putrajaya yesterday.

“According to MACC’s rough calculations, the syndicate had been profiting from subsidy payments of RM21.6 million for three years,” he said in a statement, adding that nine companies had been controlled by the syndicate.

“MACC has also frozen 12 accounts belonging to individuals and companies totalling over RM25 million.”

Khusairi said checks with the domestic trade and consumer affairs ministry found that the syndicate was given a quota of 1,000 tonnes of cooking oil per month.

“These companies were supposed to process and repack the cooking oil into 1kg packets and supply them to retailers and the public, especially the rural communities.

“But what happened was that the cooking oil, which was not repacked, was collected and exported out of the country. This leakage caused the supply of cooking oil to decline in the market,” he said.

He said in addition to doubling their profits by selling the oil overseas, the companies had also demanded subsidy payments from the government for the packaging and supply of oil.

The suspects were brought to the Putrajaya Magistrate’s Court this morning for remand application under Section 117 of the Criminal Procedure Code.

Khusairi said the case is being investigated under Section 18 of the MACC Act 2009.

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