Partners in Crime

The Chief Secretary to the Government Tan Sri Ali Hamsa should be very concern for such an organised crime which is hurting the Federal Government coffer and the rakyat, for such systemic leakage.

The Malay Mail Online:

Finance minister: Govt lost RM540m in subsidised cooking oil to smugglers

Sunday October 23, 2016
09:14 AM GMT+8
KUALA LUMPUR, Oct 23 ― Unscrupulous people have been selling subsidised cooking oil outside the country, causing the government to lose RM540 million a year, Second Finance Minister Datuk Johari Abdul Ghani revealed.

He said the government subsidised up to 85,000 metric tonnes of the control item when the consumption of the nation was only at 40,000 metric tonnes, according to a report today in Mingguan Malaysia the Sunday edition of Malay daily Utusan Malaysia.

“This means there has been an excess 45,000 metric tonnes of cooking oil that goes somewhere,” he was quoted as saying.

For one metric tonne, Johari said the government paid RM1,000.

“Hence, RM45 million multiplied by 12 months is RM540 million, so who is reaping this benefits?” he asked.

According to the report, he said the government continued to dish out subsidies because they came from the people’s money.

Johari reportedly urged the Domestic Trade, Cooperatives and Consumerism Ministry (KPDNKK) to strengthen checks to ensure there were no smuggling activities that benefitted unscrupulous people.

Last week, The Star reported that subsidies for cooking oil will be removed in stages beginning next month, leaving price controls only for 1kg packages.

Johari subsequently refuted of such a move, stressing that the people will continue to benefit from cooking oil subsidy from the government.

He explained that the government only wanted to control the price for export sale.

In announcing the Budget 2017, Prime Minister Datuk Seri Najib Razak said subsidies amounting RM10 billion will be channeled to fuel, cooking gas, toll and public transportation.


For size, 45,000 tonnes of liquid is the amount of jet aviation kerosene required for a fully laden A380 flight from Kuala Lumpur to London, 204 times.Thats daily flight to and fro London Heathrow, continuously for almost 15 weeks.

If it is cooking oil, then the process of smuggling should be more organised compared to  diesel, since cooking oil is perishable good and properties change due to exposure to weather, heat etc.

A smuggling syndicate of that size suspiciously should involve so many public servants of various capacities and ranks.

Probably badhats amongst law enforcement officers of several agencies, marine department, inspectors of the curious minds pondering easily. These public servants are immediately thought of working hand-in-hand with the smugglers. Also there is highly probably its multi level.

The guess work is endless.

Then again, if raised with KSN Ali, it is obvious outrightly he might instruct MACC to investigate as immediate response.

However, as the Head of Civil Service, it is imperative him to look into the creation and roll out of multi-agency task force to address smuggling issues.

The commodities leaving our nation such as cooking oil, diesel, LNG and inbound such as cigarettes.

It is shameful for the Executive on behalf of the rakyat  to provide so much for the civil servants but they cannot do enough to reciprocate.

KSN Ali also has the duty to protect the perception of  the larger civil service, who are free from corrupt practices. The best manner is to ensure organised crimes like massive smuggling is complete eradicated.

Published in: on October 26, 2016 at 23:48  Comments (1)  

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One CommentLeave a comment

  1. So, let me get this straight. Because of the gov’n inability to curb smuggling, u say it is justified for Msian to pay world market price for cooking oil (in USD, except for 1 kg pack) even though the stuff is produced in our backyard using cheap foreign labour at the expense of our Msian’s forest?

    Bro, may I know at what USD-RM exchange rate we are going to be charged (which is again beyond the govn ability to manage) ?

    The govn of the day is the civil servant’s boss. So u say the boss is blameless when he fails to instill good values in his employees? Kalau private company macam ni lama dah bungkus.

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