KPDN uncovers tactic of modifying vessel tank to misappropriate subsidised diesel

The Sun

15-05-2025

IPOH: A syndicate's tactic of modifying ship tanks to illegally load more subsidised diesel than allowed was uncovered by the Perak Ministry of Domestic Trade and Cost of Living (KPDN), following the detection of suspicious activities.
Perak KPDN director Datuk Kamalluddin Ismail said this followed a raid conducted at 10.30 am yesterday, during which a team of enforcement officers from the Perak KPDN 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.