PUTRAJAYA: Leakages were discovered in the implementation of the cooking oil subsidy after an audit, according to Datuk Armizan Mohd Ali, the acting Domestic Trade and Cost of Living Minister. The minister did not provide specific details but mentioned that the leakages were observed in certain districts. The full audit, which began last month, was initiated to evaluate the effectiveness and weaknesses of the subsidy.
Without revealing specifics, the acting Domestic Trade and Cost of Living Minister said the leakages were detected in certain districts. He said the ministry began the full audit last month to determine the effectiveness and weaknesses of the subsidy.
ALSO READ: Domestic Trade Ministry studying possibility subsidised cooking oil sold as used oil
“With the audit, we will be able to list the actual need for the product, how to improve the implementation of the subsidy, and a mechanism to reduce leakages and misappropriation,” he told reporters after the launching of the Cost of Living Symposium on Tuesday (Nov 28).
Asked whether the leakages were serious, the minister stated that the extent of the issue varied from one locality to another.
“We will be able to have a clearer scenario once the audit is completed in January.
“Perhaps by then, a new minister will reveal the findings and the cases which we can act on,” he added.
Armizan also said proposals would be made to prevent leakages.
ALSO READ: 60,000 tonne quota for subsidised cooking oil enough for locals, not foreigners, says Fuziah
He emphasized that RM500 million was allocated for cooking oil subsidy this year, but price increases could drive the amount up to RM1.9 billion by year’s end. According to Armizan, this is why it is necessary to address the issue of leakages, which has been raised by lawmakers like Titiwangsa MP Datuk Seri Johari Abdul Ghani.
“We must ensure that subsidies by the government are effective and that there are no leakages,” added Armizan, who is also Minister in the Prime Minister’s Department (Sabah, Sarawak Affairs and Special Duties).
