KUALA LUMPUR: The government has revoked the quotas of 25 companies involved in packing subsidised cooking oil between January and October this year after they were found to have violated the conditions set for quota holders.
Deputy Domestic Trade and Cost of Living Minister Dr Fuziah Salleh added that the ministry has also suspended the quotas of 13 other companies packing subsidised cooking oil, following investigations conducted by the ministry into these companies.
The ministry, said Fuziah, is also reviewing and considering quota revocations and suspensions for several packaging companies still under investigation.
"The revocation and suspension of quotas are punitive measures imposed on companies that breach quota holder conditions as participants under the Cooking Oil Stabilisation Scheme (COSS).
"These companies may face more severe penalties, including legal action under the Control of Supplies Act 1961, if they were found to have violated regulations and licence conditions," she said.
Fuziah said the ministry will continue to monitor leakages through the eCOSS system, intensifying inspections as well as carrying out more audits of cooking oil packaging companies to curb widespread leakage.
"Based on enforcement actions and information gathered, there are companies, wholesalers, and suppliers were found to be involved in these activities.
"The substantial profits gained from such activities are the main driving factor, as it provides immediate cash flow.
"At the same time, subsidised cooking oil suppliers also file claims for subsidy payments from the government," she said.
Fuziah concurred with views that the persistent misappropriation of subsidised cooking oil constitutes 'sabotage' against the government.
The government has acknowledged this issue and is actively seeking the best approach to prevent the loss of billions in subsidies intended to support the public.