MELAKA: Helang Gagah Group Sdn Bhd and its two directors were fined RM1.1 million by the Ayer Keroh Sessions Court today for the offence of possessing and controlling controlled goods, specifically 5,300kg of sugar, without a valid licence three years ago.
Judge Darmafikri Abu Adam delivered the sentence after determining that the defence had failed to create reasonable doubt in the case.
The court found sufficient evidence to convict both the company and its directors, Datuk Mohamad Zaini Md Taha, 46, and his wife Datin Nur Bazilah Ahmad, 39.
In his ruling, Darmafikri said that the prosecution had successfully proven its case beyond a reasonable doubt.
This conclusion was reached after evaluating the testimonies of nine prosecution witnesses and two defence witnesses, as well as the arguments presented by both sides.
The charges stem from an incident that occurred on Oct 26, 2021, at the company's premises located on Jalan MHH F2/3, Kilang Teres Melaka Halal Hub Phase 2, Serkam Darat, Jasin.
The accused were found in possession of 5,300kg of Citra brand coarse white sugar, which was deemed to be under controlled regulations.
They were charged under Regulation 3(1) of the Supply Control Regulations 1974 for dealing in controlled goods without a valid licence.
The case fell under Section 21(1) of the Supply Control Act 1961, with penalties outlined under Section 22(1) of the same Act and Section 34 of the Penal Code.
For this offence, individuals face a maximum fine of RM1 million, and for repeat offenders, up to RM3 million. Corporate bodies can be fined up to RM2 million, with a maximum of RM5 million for subsequent offences.
During sentencing, lawyer Mohammad Irwan Shah Md Asri requested a lighter fine, citing the company's pending closure and Mohamad Zaini's health issues, including a heart condition, as well as his responsibilities as a parent to a young child.
Deputy public prosecutors Syazwani Zawawi and Nor Alimah Mohd Sanusi, representing the Domestic Trade and Cost of Living Ministry, argued for a substantial penalty.
Syazwani emphasised the importance of controlling sugar prices, given its essential role in food, agriculture, and pharmaceuticals, and stressed the need to uphold high fines to prevent such violations.
"Although sugar does not have a subsidy, it is a controlled item with a maximum price regulated by the government between RM2.70 and RM2.90 per kg to ensure an uninterrupted supply and controlled prices to avoid burdening the public.
"The importance of sugar not only as an ingredient in food and drinks but also its use in agriculture and pharmaceuticals in the country.
"Additionally, the case has gone through a long trial, and the defendants' claim that the sugar belonged to someone else cannot be accepted by the court as a mitigating factor," she said.
Darmafikri ultimately fined Mohamad Zaini and Nur Bazilah RM200,000 each, with a 12-month prison sentence if they fail to pay.
The company was fined RM700,000.
The court also denied the defence's request to stay the execution of the fine, citing insufficient justification for such a request.
ends/.