Syndicate using modified ship tanks to store subsidised diesel uncovered
IPOH: A syndicate's tactic of modifying ship tanks to illegally load more subsidised diesel than permitted was uncovered by the Perak Domestic Trade and Cost of Living Ministry, following the detection of suspicious activities.
Perak ministry director Datuk Kamalluddin Ismail said the discovery was made during a 10.30am raid yesterday, during which a team of enforcement officers from the ministry's Manjung Branch seized 50,900 litres of liquid believed to be diesel, along with other equipment, with an estimated total value of RM355,040, at a premises in Pantai Remis.
"Based on inspections and intelligence gathered, the syndicate's modus operandi involved modifying the ship's original fuel tank, which is limited to 3,000 litres, by adding an extra tank capable of storing 7,000 litres," he said in a statement today.
Kamalluddin said the subsidised diesel was believed to have been purchased using the fuel quota of another vessel at a controlled price before being resold to industries in Pantai Remis.
At the time of the raid, he said, a ship was caught transferring diesel from its tank to a skid tank using a hose and suction pump.
He said the skid tank functioned as a storage facility for unsubsidised diesel and suspected to have been used as a collection point for diesel obtained through the syndicate's fraudulent activities.
"Authorities also discovered purchase and sale documents, along with quota cards belonging to other vessels, believed to have been used in this scheme," he said.
Preliminary investigations revealed that the premises held a valid permit to store scheduled controlled goods, namely unsubsidised diesel, with an approved storage capacity of 58,000 litres, intended for use by category C2 fishing vessels.
Following the raid, a 32-year-old local man, who claimed to be the owner of the premises, was arrested.
Additionally, a drifting trawler and diesel suction equipment were seized for further investigation.
The case will be investigated under the Control of Supplies Act 1961. – BERNAMA
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
30 minutes ago
- The Sun
Businesses engaged in foreign transactions must exercise heightened diligence under AMLA
KUALA LUMPUR: Malaysian business owners engaged in international transactions are advised to maintain comprehensive records and promptly report any suspicious activity to Bank Negara Malaysia (BNM) to ensure compliance with the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001(AMLA). Lawyer Guok Ngek Seong, who has nearly 25 years of experience in civil and criminal litigation, told Bernama that companies operating in high-risk sectors such as maritime, petroleum and logistics, which frequently conduct foreign exchange transactions, must exercise heightened diligence in documenting their operations. He was speaking on the matter in light of recent actions taken by BNM, which imposed administrative monetary penalties amounting to RM4.95 million on several financial institutions for breaches of statutory and regulatory obligations. The penalties involved non-compliance with provisions under the Development Financial Institutions Act 2002 as well as failures to adhere to requirements under the Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions for Financial Institutions Policy Document. These regulatory actions reflect the heightened scrutiny placed on financial and corporate entities, reinforcing the need for robust compliance measures, especially in sectors exposed to cross-border transactions. Guok stressed that proper record-keeping may constitute a key line of defence should a company come under investigation for alleged money laundering or involvement in unlawful activities. 'BNM has the authority to conduct annual checks on such entities to ensure compliance with AMLA regulations,' he said. When asked whether litigants may obtain court orders through pre-action discovery or the Norwich Pharmacal process, Guok explained that such orders are available to parties seeking disclosure from individuals or entities not directly involved in the anticipated proceedings. He noted that Norwich Pharmacal orders permit a litigant to compel a third party, who is not itself implicated in the alleged wrongdoing but is mixed up in it innocently, to disclose information necessary to identify or pursue the actual wrongdoer. 'However, the court must balance such applications to prevent any form of abuse or 'fishing expeditions', particularly in light of, among other considerations, the principle of banker-client privilege. 'It is sometimes crucial for clients to obtain documents from banks, especially in cases where suspicious transactions have been traced to accounts held by corporations later found to be involved in fraudulent activities,' he said. He said the only viable means for victims to substantiate such transactions is by obtaining the relevant documentation, which may be instrumental in identifying the mechanisms or systems employed to facilitate the fraudulent activity. Commenting on the Bankers' Books (Evidence) Act 1949 (BBEA), Guok noted that while Section 6 restricts the compellability of bank officers to produce bankers' books where the bank is not a party to the proceedings, the court nonetheless retains the discretion to issue such an order where appropriate. 'The court must balance the interests of banker-client confidentiality against the issues in the particular suit before making appropriate orders. 'While some discovery applications may be deemed an abuse of process, others are genuine, especially when litigants require documents from banks to trace the money trail in their cases,' he added.
Barnama
33 minutes ago
- Barnama
Businesses Engaged In Foreign Transactions Must Exercise Heightened Diligence Under AMLA
By KUALA LUMPUR, June 5 (Bernama) -- Malaysian business owners engaged in international transactions are advised to maintain comprehensive records and promptly report any suspicious activity to Bank Negara Malaysia (BNM) to ensure compliance with the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001(AMLA). Lawyer Guok Ngek Seong, who has nearly 25 years of experience in civil and criminal litigation, told Bernama that companies operating in high-risk sectors such as maritime, petroleum and logistics, which frequently conduct foreign exchange transactions, must exercise heightened diligence in documenting their operations. He was speaking on the matter in light of recent actions taken by BNM, which imposed administrative monetary penalties amounting to RM4.95 million on several financial institutions for breaches of statutory and regulatory obligations. The penalties involved non-compliance with provisions under the Development Financial Institutions Act 2002 as well as failures to adhere to requirements under the Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions for Financial Institutions Policy Document. These regulatory actions reflect the heightened scrutiny placed on financial and corporate entities, reinforcing the need for robust compliance measures, especially in sectors exposed to cross-border transactions. Guok stressed that proper record-keeping may constitute a key line of defence should a company come under investigation for alleged money laundering or involvement in unlawful activities. 'BNM has the authority to conduct annual checks on such entities to ensure compliance with AMLA regulations,' he said.
Barnama
an hour ago
- Barnama
Fire Dept Receives 42 Integrity-related Complaints As Of May
GENERAL KOTA BHARU, June 5 (Bernama) -- The Malaysian Fire and Rescue Department's Integrity Unit has received 42 integrity-related complaints, involving its officers and personnel, as of May. Its director-general Datuk Nor Hisham Mohammad said the highest number of complaints fell under misconduct, with 22 cases, followed by power abuse (eight), sexual harassment or scandal (four), enforcement issues (four), corruption (three), and misappropriation (one). He added that the misconduct cases included five related to disciplinary issues, three cases of domestic violence, three involving social media misuse, two cases each of lavish lifestyle, fraud, and loan issues, as well as one case each of vandalism and negligence in duty, with three falling under other categories. 'Although we received 42 complaints related to the integrity of our officers and personnel, the department views these reports positively, as they serve as a preventative measure to curb future misconduct. 'In fact, thanks to these complaints, we've observed a significant drop in disciplinary actions - only 13 cases recorded this year, compared with 55 last year," he said. He said this to reporters, after officiating a talk on governance, integrity and anti-corruption, at the Kelantan National Department for Culture and Arts (JKKN) Complex in Tanjung Chat, today, which was also attended by Kelantan JBPM director, Farhan Sufyan Borhan. Commenting further, Nor Hisham said that out of the 13 disciplinary actions recorded this year, 11 involved absence from duty - a shift from previous years, where drug abuse was the most common offence among officers and personnel. 'We also observed an increase in complaints filed through the e-aduan portal and the Public Complaints Management System (SISPAA), with 95 cases recorded last year, compared with 87 in 2023. 'Of these, 60 per cent were internal complaints, while the remaining 40 per cent came from the public. Appropriate action has been taken on all issues raised,' he said.
