The diversion of subsidised cooking oil is a result of collusion among wholesalers, distributors, and packagers. They work together to falsify invoices for the distribution of subsidised cooking oil. The oil is then either sold at higher prices to neighbouring countries or to the industry under the company’s brand.
Cooking oil scandal
The packaging companies are supplied with a monthly amount of cooking oil, ranging from 50 to 500 tonnes, for which they are paid around 60 sen per kilogram of government-subsidised oil. Despite enforcement actions, the subsidy diversion will continue as long as there is demand and supply, particularly from neighbouring countries.
Over the last four years, there have been 679 cases of subsidised oil diversion, involving RM15.88 million. KPDNHEP is conducting research, monitoring, and operations to ensure that subsidised goods diversion and losses are completely eradicated. Recently, two directors of a company were brought before the court on charges of submitting false documents and possessing controlled items of cooking oil exceeding the allowed limit.
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