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SANDAKAN: The Sandakan branch of the Ministry of Domestic Trade and Cost of Living (KPDN) has cracked down on the illegal distribution of subsidised diesel following a raid on an unlicensed storage facility in Kampung Segaliud on Tuesday (24 Feb).

KPDN Sandakan Chief, Joe Azmi Azmil, said the raid at around 12:46 p.m. led to the seizure of 1,200 litres of diesel stored in six drums.

“Several documents were also confiscated, with the total value of the seizure estimated at RM5,340.

“A 51-year-old foreigner believed to be managing the premises was arrested to assist with the investigation,” he said in a media statement on Friday.

Preliminary investigations revealed that the location did not have any official permission or licence to store controlled goods.

The case is being investigated under Section 20(1) of the Control of Supplies Act 1961 for storing controlled goods without the approval of the Malaysian Supply Controller.

Under the Act, offenders may be fined up to RM1 million, imprisoned for up to three years, or both. 

Repeat offenders may face fines up to RM3 million or imprisonment up to five years. Companies can be fined up to RM2 million, rising to RM5 million for subsequent offences.

KPDN also reminded petrol station operators not to sell subsidised diesel or RON95 petrol to parties without written approval from the ministry. 

Strict action will be taken against any retailer found violating the Control of Supplies Regulations 1974.

Since 1 January to 26 February 2026, KPDN Sandakan has recorded 11 cases under the Control of Supplies Act 1961, with seizures valued at RM965,742. 

An additional 26 cases were acted upon under other laws, with seizures amounting to RM11,634.

In Kudat, the Malaysian Maritime Enforcement Agency (MMEA) detained a cargo boat suspected of transporting controlled fuel items without a valid permit during an operation in the waters of Kuala Kaindangan, Pitas, on Thursday.

Zone Director Hasbullah Omar said the vessel was detected by a Maritim Malaysia patrol boat during a routine patrol before further inspection found it carrying controlled goods without proper documentation.

He said the cargo boat was carrying petrol and diesel estimated to be worth RM5,000.

The vessel was operated by a 60-year-old local skipper and assisted by a 38-year-old male crew member. Both failed to produce valid documents for the transportation of controlled goods when requested by enforcement officers.

The boat and its cargo were subsequently detained and escorted to Sabah Port Kudat Jetty for further action. The case is being investigated under the Akta Kawalan Bekalan 1961 for transporting controlled items without lawful authorization.

Hasbullah stressed that the agency will continue to intensify patrols and monitoring in northern Sabah waters to curb smuggling and the misuse of controlled goods, which could threaten national security and the economy.