Subsidised Cooking Oil Ministry Official Allegedly Overspends Rm9m

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A high-ranking official at the Domestic Trade and Consumer Affairs Ministry allegedly overspent on cooking oil subsidies last year, prompting an official investigation.
Industry sources told Malaysiakini that during the transition of government last year, the ministry’s secretary-general Azman Mohd Yusof approved the subsidy totalling about RM9 million to over 20 companies even though the quota has already been exhausted.
In two letters sighted by Malaysiakini, Azman’s office gave approval to two of these companies on Nov 21, last year. It says the government will supply the two companies with 150 tonnes of subsidised cooking oil per month for five years, pursuant to the application they made in April of that year.
The letters also show the two companies sharing the same address in Kuala Lumpur.
For context, the 15th general election was held on Nov 19 last year, but Anwar Ibrahim was not sworn in as prime minister until Nov 24. The first batch of 28 cabinet members was sworn in on Dec 2.
This entailed rebranding the ministry as the Domestic Trade and Cost of Living Ministry, with Salahuddin Ayub as its minister.
Same address
Sources indicated that the circumstances surrounding the cooking oil subsidy approval raise suspicions – given its timing during the transition of power, the over-expenditure of the quota, and the two companies sharing the same address.
Another source told Malaysiakini that Azman had gone 5,439 tonnes over the quota in November last year.
According to what appears to be an internal document from the ministry, the ministry’s officials have proposed reducing the subsidy of some companies this year to make up for the shortfall caused by the over-expenditure.
They proposed three options: To cut the subsidy for companies that have received it for more than five years, to cut the subsidy for companies receiving more than 500 tonnes, or for those receiving more than 300 tonnes.
Meanwhile, the source showed a letter that purportedly came from Azman’s office dated Nov 29 last year, informing a company that has received cooking oil subsidies for more than five years that its subsidy will be reduced.
Additional expenditure
The source also questioned how Azman could still approve cooking oil subsidies to more companies even though the quota for this has been exhausted and a new minister has yet to be sworn in, and whether this amounted to an abuse of power.
Currently, the government is able to subsidise 60,000 tonnes of cooking oil per month, which the source claims costs the government about RM180 million per month.
Exceeding the quota by 5,000 tonnes is expected to incur an additional expenditure of about RM9 million, the source said.
The source also claimed that MACC has summoned several ministry officials including Azman for questioning.
Malaysiakini has contacted Azman and MACC for comment and has yet to receive a reply.
Domestic Trade and Cost of Living Minister Salahuddin AyubSalahuddin, meanwhile, reportedly told China Press yesterday the matter will be handled in accordance with legal due processes.
“No matter if it involves him (Azman) or any other ministry officers, I always uphold the principle of integrity. Let the law take its course,” he was quoted as saying.
In February, Salahuddin told parliament that his ministry intends to increase the quota for the cooking oil subsidy, but it needs to be discussed at a meeting of the National Action Council on Cost of Living. - Mkini

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