Latest news with #COSS
The Star
5 days ago
- Business
- The Star
New app to tackle cooking oil subsidy abuse
KUALA LUMPUR: The Mobile eCOSS (Cooking Oil Stabilisation Scheme) Application will be able to provide data on the demand of cooking oil to curb smuggling and subsidy leakages, says Datuk Seri Armizan Ali ( pic ). The Domestic Trade and Cost of Living Ministry said the data will also help in deciding government policy in ensuring the delivery of cooking oil subsidy. 'We didn't have the exact updated data on the usage of cooking oil, but with eCOSS, we will have the purchase data. 'From here, than we can draft the way forward policy to target cooking oil subsidies to those who are eligible,' he said when wrapping up his ministerial replies when debating the Auditor-General's Report in Dewan Rakyat, a first in Parliament. Armizan also said that his ministry has initiated a pilot project on the app in Johor in May. He added that the mobile app would also allow the government to monitor sales of cooking oil to foreigners. 'The application will be rolled out gradually, ensuring system stability before full implementation. 'Through the Mobile eCOSS App, retail purchase data will be recorded, allowing the ministry to monitor retailer sales records and consumer purchase data, including identities based on National Registration Department records. 'This strategy enables monitoring and enforcement against sales and purchases exceeding limits or to foreigners,' he added. The latest A-G report found that the current policy on subsidised cooking oil is not comprehensive and has allowed non-targeted groups, including non-citizens, to benefit from the subsidy. The department said the existing framework under COSS lacked clear eligibility requirements for the purchase of subsidised cooking oil, with the Auditor-General recommending that the ministry improve its COSS guidelines to tackle leakages.
The Star
5 days ago
- Business
- The Star
Mobile app to combat cooking oil smuggling, subsidy leakages
PETALING JAYA: The Mobile eCOSS Application will provide data on cooking oil demand to curb smuggling and subsidy leakages, says Domestic Trade and Cost of Living Minister Datuk Seri Armizan Ali. He said this data will assist in forming government policy for cooking oil subsidy delivery. "We didn't have exact data on cooking oil usage, but with eCOSS, we'll have purchase data," he said on Wednesday (July 23). "From here, we can draft policy and target cooking oil subsidies to eligible recipients," he added during his ministerial replies in Dewan Rakyat. This marked the first time the Auditor-General's Report was tabled for debate. Armizan also mentioned a pilot project for the application began in Johor in May. He said the mobile app would allow monitoring and enforcement against sales to foreigners. 'The application will be rolled out gradually to ensure system stability before full implementation. 'Through the Mobile eCOSS Application, retail purchase data will be recorded, enabling monitoring of retailer sales and consumer purchase data, including identities based on National Registration Department records. 'This strategy facilitates monitoring and enforcement against sales exceeding limits or to foreigners,' he added. The latest Auditor-General's report revealed the current policy on subsidised cooking oil is not comprehensive, allowing non-targeted groups, including non-citizens, to benefit. The report suggests the ministry improve its Cooking Oil Price Stabilisation Scheme (COSS) guidelines to address these issues.
The Star
7 days ago
- Business
- The Star
Rampant abuse of subsidised cooking oil
PETALING JAYA: Subsidised cooking oil meant for household usage has been sold in bulk to restaurants and caterers, with over 50 tonnes of the product diverted. The Auditor-General's report series 2/2025 revealed that as much as 55,167kg of subsidised cooking oil was sold to these quarters, in breach of official guidelines. In the report published yesterday, it said this did not align with the standard operating procedures of the Cooking Oil Price Stabilisation Scheme (COSS) guidelines issued by the Domestic Trade and Cost of Living Ministry. An audit at a Kelantan-based retailer last July found a business, which operated as a restaurant, had stored up to 204kg of subsidised cooking oil. In 2024, the company had purchased 11,390kg of subsidised oil from five manufacturers. CLICK TO ENLARGE An unrecorded sale of 561kg between the retailer and a manufacturer was also flagged. In Terengganu, a wholesaler was found to have sold cooking oil to multiple caterers between January 2023 and June 2024. Audit checks revealed 189 cash transactions worth RM77,657.50 involving subsidised oil. A separate case in Miri, Sarawak, found that a supplier had distributed RM5,700 worth of subsidised cooking oil to unlicensed individuals for free between April and July last year. The supplier claimed to represent an NGO. Following these findings, the ministry confirmed that the Kelantan company's controlled goods licence had been revoked and its eCOSS account deactivated to prevent further supply. The unrecorded transaction will meanwhile be referred to the ministry's enforcement division. The wholesaler's account in Terengganu has also been deactivated pending investigations. The report also revealed cases of retailers selling more than three packets of subsidised oil per customer. This includes a case in Selangor where a retailer sold 170 packets worth RM425 to a catering company, and a separate case in Terengganu where a trader made two transactions of subsidised cooking oil totalling RM57.50. The report also revealed discrepancies in how subsidised cooking oil stocks were recorded and kept in the inventory. 'Lack of effective enforcement will open opportunities for companies to manipulate sales in their stock books,' the Auditor-General's report said. It also said there were no clear guidelines for managing spoiled cooking oil nor its sale, resulting in two companies storing 942kg of the product for sale to used cooking oil collectors. The report said a total of 16 companies were involved in this. To this, the Domestic Trade and Cost of Living Ministry said its COSS guidelines would be reviewed to include a procedure for this. To plug leakages, the Auditor-General recommended that the COSS scheme be overhauled. 'There must also be targeted distribution schemes to ensure only eligible households can purchase the subsidised product, and limit it from being sold to foreigners and commercial entities. 'The purchase limit should also be reviewed,' it stated. It said the COSS system must be used holistically to prevent any leakages. The A-G's report also proposed that targeted initiatives such as the Sumbangan Asas Rahmah (Sara) programme be expanded.
BusinessToday
21-07-2025
- Business
- BusinessToday
Subsidised Cooking Oil Program Marred By Lapses, Says Audit
The Auditor-General's Report 2/2025 revealed widespread weaknesses in the implementation, monitoring and enforcement of the subsidised cooking oil programme under the Ministry of Domestic Trade and Cost of Living (KPDN), citing breaches in regulations and standard operating procedures (SOPs). Among the issues were open sales to all consumer categories, sales exceeding the set limit and non-compliance with the Scheduled Controlled Goods Retail Licence (CSA). The report also flagged violations such as subsidised oil being priced above the RM2.50 ceiling, damaged oil lacking clear SOPs for disposal and the absence of halal certification for several suppliers. 'Existing policies also do not specify that subsidised oil should be distributed only to targeted groups in need, resulting in even foreigners benefiting from the government aid,' the report said. A key finding showed that 55,167kg of subsidised oil was sold to ineligible groups such as eateries, hawkers and NGOs, which violated paragraph 7.3.4(g) of the COSS (Cooking Oil Price Stabilisation Scheme) SOP. It was also revealed that 713,442kg of subsidised cooking oil was sold beyond the permitted limit of three packets per person per transaction, as stated in a ministry directive dated July 21, 2022. The audit highlighted data manipulation among wholesalers and retailers, with a discrepancy involving 13,124kg in stock transaction records. Some subsidised oil was sold between RM2.60 and RM4 per packet, breaching the price control cap. Additionally, 942kg of damaged oil was found stored by two companies intending to sell it to used-oil collectors, while 16 companies were identified repackaging spoiled oil. Nine out of 72 packing firms sampled lacked halal certification and six of them falsely printed halal markings on packaging. The report recommended that KPDN revise and enhance the COSS SOPs periodically, including the management of spoiled oil and stricter halal certification monitoring. It also proposed a clear policy ensuring that only eligible households receive subsidies. A more comprehensive digital system like eCOSS should be adopted for real-time tracking of distribution and sales to reduce data manipulation. Internal audits and cross-verification of sales reports were also advised. The ministry was urged to review existing licensing regulations, including suspending or revoking CSA licences for violations, especially when multiple licences are registered at the same premises. The Auditor-General further recommended KPDN to enforce retail price monitoring aggressively with support from local authorities to uphold the RM2.50 price ceiling and to establish a complete damaged oil management SOP, enforce mandatory halal certification and prosecute false halal labelling under the Trade Descriptions Act 2011. Expanding the subsidy channel via the Sumbangan Asas Rahmah (SARA) programme was also among the suggested improvements. Related
The Sun
21-07-2025
- Business
- The Sun
Subsidised cooking oil flaws found in KPDN audit report
KUALA LUMPUR: Weaknesses in the implementation, monitoring, and enforcement of Malaysia's subsidised cooking oil programme have been highlighted in the 2025 Auditor-General's Report. The findings, tabled in the Dewan Rakyat, point to regulatory gaps in the Ministry of Domestic Trade and Cost of Living's (KPDN) policies. The report identified multiple issues, including the sale of subsidised cooking oil beyond permitted limits, open sales to ineligible consumers, and non-compliance with retail licensing rules. Prices exceeding the RM2.50 per packet ceiling, lack of halal certification, and improper handling of spoiled oil were also flagged. 'Current policy does not specify that distribution must target eligible groups, allowing foreigners to benefit from subsidies,' the report stated. Auditors found that 55,167 kg of subsidised oil were sold to eateries, restaurants, and NGOs, violating programme guidelines. Further discrepancies included wholesalers and retailers manipulating sales records, with 713,442 kg sold above the three-packet purchase limit. Some retailers charged between RM2.60 and RM4.00 per packet, breaching the controlled price. The audit also uncovered poor management of spoiled cooking oil, with two companies storing 942 kg for resale to used oil traders. Additionally, 16 firms were found repackaging spoiled oil. Among 72 packaging firms sampled, nine lacked halal certification, with six falsely printing halal logos. To address these issues, the report recommended that KPDN strengthen the Cooking Oil Price Stabilisation Scheme (COSS) SOPs, enforce targeted distribution, and adopt digital monitoring via eCOSS. Stricter penalties, including licence revocation for violators, were also suggested. 'KPDN must collaborate with enforcement agencies to ensure compliance with the RM2.50 price cap,' the report urged. The ministry was also advised to develop clear procedures for spoiled oil disposal and make halal certification mandatory for all packaging firms. – Bernama
