Sandakan company probed for diverting subsidised cooking oil to unauthorised retailers

A view inside the repacking facility inspected by KPDN Sandakan officers.
KOTA KINABALU: A cooking oil repacking company is under investigation for allegedly distributing subsidised cooking oil in 1kg packets to unauthorised retailers.
Domestic Trade and Cost of Living Ministry branch in Sandakan said a compliance audit last week found that 13-tonne, around 38% of the company's total allocation of 34-tonne cooking oil, had been delivered to unapproved premises.
Its district enforcement chief Azdy Zukkry John said action had been taken against the Sandakan-based firm under the Control of Supplies Act 1961.
In a statement on Tuesday, he said documents including invoices, sales receipts, stock records and controlled goods licences were seized from the company.
According to the statement, since August 2024, repacking companies have been required to follow strict delivery guidelines in an effort to prevent leakage and misuse of subsidised goods.
The ministry reminded all parties involved in the distribution of subsidised cooking oil to comply with government directives to ensure this aid reaches its intended recipients.
Under the Control of Supplies Act, individuals found guilty of offences may face fines of up to RM1mil, imprisonment for up to three years, or both. Companies can be fined up to RM2mil, with higher penalties for repeat offences.
Consumers are encouraged to report any suspected irregularities in the supply chain via the 1-800-886-800 hotline, whatsapp at 019-848 8000, e-aduan portal (http://eaduan.kpdn.gov.my), email (eaduan@kpdn.gov.my), the Ez Adu KPDN app or the enforcement command centre at 03-8882 6088/6245.

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