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MACC busts RM247m diesel subsidy theft syndicate in Ops Karen, more arrests coming
KUALA LUMPUR, Sept 22 — The Malaysian Anti-Corruption Commission (MACC) has exposed a fuel theft syndicate that siphoned off an estimated RM247 million in diesel subsidies in a major joint operation with the Multi-Agency Task Force (MATF).
MACC chief commissioner Tan Sri Azam Baki said the figure could rise as investigations deepen.
“We saw that the first estimate of losses was RM247 million, but we believe it will be more. This is money meant for subsidies — money for the people — that has been misused,” he said during a press conference at MACC headquarters today.
Azam said the operation was built on real-time financial analysis that tracked suspicious transactions.
“We followed the money trail, which also came from public tip-offs. This syndicate had been operating underground for nearly a decade and after monitoring, surveillance and more, we managed to catch them.
“The perpetrators consist of company directors — some with honorific titles like ‘Dato’ — as well as other top-level management. We also believe this involves organised crime groups,” he said.
The operation was codenamed Ops Karen.
Azam noted that the syndicate was aided by underground networks, even though the company was legally registered.
“They were facilitated by secret societies, especially in places like Bintulu, to move diesel through underground channels — from fishermen to storage tanks — while evading authorities,” he revealed.
He confirmed that two individuals with the honorific title “Dato” were among those implicated. He also emphasised that these were “main companies, not subsidiaries,” that had monopolised parts of the diesel supply chain.
Azam warned that more action would follow.
“Various actions will be taken — seizures, investigations, blacklisting. The Ministry of Finance and KPDN will also intervene to ensure the integrity of the oil subsidy system. We want to recover as many assets and as much money as we can and return it to the government, as these subsidies were meant for the people,” he added.
