SANDAKAN: A company involved in repackaging subsidised one kg cooking oil packets here has been subjected to enforcement action under the Control of Supplies Act 1961 (Act 122) for failing to comply with a government-issued distribution directive.
According to Azdy Zukkry John, Chief Enforcement Officer of the Ministry of Domestic Trade and Cost of Living (KPDN) Sandakan branch, the breach was uncovered during a comprehensive audit operation on repackaging premises and licensed retailers throughout the district.
“Checks revealed that only 21 metric tonnes of subsidised one kg cooking oil packets had been distributed by the company, out of the 34 metric tonnes it was required to distribute,” he said in a statement on Tuesday.
“The remaining 13 metric tonnes were found to have been delivered to unauthorised locations without approval from the Controller of Supplies,” he said,
Following the discovery, enforcement action was taken under the Control of Supplies Act 1961 against the company.
Several key documents were also seized, including invoices, sales receipts, stock books, and the company’s Controlled Goods Licence (CSA), for further investigation.
Azdy explained that the distribution directive for subsidised cooking oil has been in effect since August 2024, aimed at preventing misappropriation and leakages in subsidised supply chains.
“Prior to that, repackaging companies were free to distribute supplies to customers of their choice,” he added.
He stressed that monitoring and auditing efforts would continue to ensure that subsidised cooking oil reaches its intended recipients.
“All parties involved in the supply chain are reminded to act responsibly and remain committed to the proper management of controlled goods,” he said.
Under the Act, individuals found guilty of a first offence may face up to RM1 million in fines or imprisonment of up to three years, while companies may be fined up to RM2 million.
Harsher penalties apply for repeat offenders, he said.
