Fuel smugglers' RM17m 'frozen'

ALOR STAR: The authorities have frozen 30 bank accounts with RM17 million in accumulated value belonging to companies and individuals in a crackdown on subsidised fuel smuggling networks in the northern states.

The move comes in the wake of a joint operation involving multiple agencies in six locations in Kedah, Penang and Perlis, which led to the seizure of subsidised diesel and petrol worth about RM1.5 million on Tuesday.

The authorities seized cash totalling RM850,000 during simultaneous raids in four premises in Kedah and one each in Padang Besar, Perlis and Seberang Perai, Penang, where they arrested a woman in her 40s.

The crackdown involved 100 police and officers from the Domestic Trade, Cooperatives and Consumer Affairs Ministry, Bank Negara, Customs Department, Malaysian Anti-Corruption Commission, Inland Revenue Board, Cyber Security and Malaysian Companies Commission (Putrajaya), and was coordinated by a special task force of the Attorney-General's Chambers.

Ministry enforcement division director-general, Mohd Roslan Mahayudin, said the operation, codenamed "OD1N" (Operation Diesel and Petrol 1 North) was to prevent subsidised fuel smuggling activities.

Roslan said the ministry had raided all six locations previously but the syndicates, believed to be connected to one another, remained active for years.

"All the locations had been raided by the state enforcement teams before but the syndicates refused to give up their trade," he said at the state domestic trade office here yesterday. Present were his deputy, Datuk Iskandar Halim, and the ministry's state deputy enforcement director, Khalid Tik.

Roslan said the move to freeze the 30 accounts proved that the ministry was serious about clamping down on subsidised fuel smuggling activities.

"Previously, these syndicates went back to business not long after they were raided. That is why we froze their bank accounts: to stop their activities pending further investigation." he said.

He also warned fuel suppliers and petrol kiosk operators against selling their supply to syndicates.