
Rampant abuse of subsidised cooking oil
The Auditor-General's report series 2/2025 revealed that as much as 55,167kg of subsidised cooking oil was sold to these quarters, in breach of official guidelines.
In the report published yesterday, it said this did not align with the standard operating procedures of the Cooking Oil Price Stabilisation Scheme (COSS) guidelines issued by the Domestic Trade and Cost of Living Ministry.
An audit at a Kelantan-based retailer last July found a business, which operated as a restaurant, had stored up to 204kg of subsidised cooking oil.
In 2024, the company had purchased 11,390kg of subsidised oil from five manufacturers.
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An unrecorded sale of 561kg between the retailer and a manufacturer was also flagged.
In Terengganu, a wholesaler was found to have sold cooking oil to multiple caterers between January 2023 and June 2024.
Audit checks revealed 189 cash transactions worth RM77,657.50 involving subsidised oil.
A separate case in Miri, Sarawak, found that a supplier had distributed RM5,700 worth of subsidised cooking oil to unlicensed individuals for free between April and July last year.
The supplier claimed to represent an NGO.
Following these findings, the ministry confirmed that the Kelantan company's controlled goods licence had been revoked and its eCOSS account deactivated to prevent further supply.
The unrecorded transaction will meanwhile be referred to the ministry's enforcement division.
The wholesaler's account in Terengganu has also been deactivated pending investigations.
The report also revealed cases of retailers selling more than three packets of subsidised oil per customer.
This includes a case in Selangor where a retailer sold 170 packets worth RM425 to a catering company, and a separate case in Terengganu where a trader made two transactions of subsidised cooking oil totalling RM57.50.
The report also revealed discrepancies in how subsidised cooking oil stocks were recorded and kept in the inventory.
'Lack of effective enforcement will open opportunities for companies to manipulate sales in their stock books,' the Auditor-General's report said.
It also said there were no clear guidelines for managing spoiled cooking oil nor its sale, resulting in two companies storing 942kg of the product for sale to used cooking oil collectors.
The report said a total of 16 companies were involved in this.
To this, the Domestic Trade and Cost of Living Ministry said its COSS guidelines would be reviewed to include a procedure for this.
To plug leakages, the Auditor-General recommended that the COSS scheme be overhauled.
'There must also be targeted distribution schemes to ensure only eligible households can purchase the subsidised product, and limit it from being sold to foreigners and commercial entities.
'The purchase limit should also be reviewed,' it stated.
It said the COSS system must be used holistically to prevent any leakages.
The A-G's report also proposed that targeted initiatives such as the Sumbangan Asas Rahmah (Sara) programme be expanded.
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New Straits Times
2 hours ago
- New Straits Times
Ministry proposes broader access to essential items for Sara aid recipients
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The Star
3 hours ago
- The Star
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Barnama
3 hours ago
- Barnama
58th AMM Highlights ASEAN's Balancing Act Amid Superpower Rivalry
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The meetings, held from July 8 to 11, were hosted under Malaysia's 2025 ASEAN Chairmanship, with the theme 'Inclusivity and Sustainability'. -- BERNAMA BERNAMA provides up-to-date authentic and comprehensive news and information which are disseminated via BERNAMA Wires; BERNAMA TV on Astro 502, unifi TV 631 and MYTV 121 channels and BERNAMA Radio on FM93.9 (Klang Valley), FM107.5 (Johor Bahru), FM107.9 (Kota Kinabalu) and FM100.9 (Kuching) frequencies. Follow us on social media : Facebook : @bernamaofficial, @bernamatv, @bernamaradio Twitter : @ @BernamaTV, @bernamaradio Instagram : @bernamaofficial, @bernamatvofficial, @bernamaradioofficial TikTok : @bernamaofficial