Latest news with #eCOSS
The Star
a day 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 Following these findings, the ministry confirmed that the Kelantan company's controlled goods licence had been revoked and its eCOSS account deactivated to prevent further supply.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.
The Sun
2 days ago
- 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
The Star
2 days ago
- Business
- The Star
Over 50 tonnes of subsidised cooking oil sold in breach of guidelines, Auditor-General's Report reveals
PETALING JAYA: More than 50,000kg of subsidised cooking oil was sold to food operators, restaurants, traders, and non-governmental organisations, in breach of official guidelines, the latest Auditor-General's Report has revealed. According to the report released Monday (July 21), these transactions were not in line with the Cooking Oil Price Stabilisation Scheme (COSS) standard operating procedures issued by the Domestic Trade and Cost of Living Ministry. An audit at a Kelantan-based retailer last July found the 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. 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 which sold 170 packets worth RM425 to a catering company, and a trader in Terengganu who made two transactions 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,' it said. The report 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. 16 companies were also involved in the repackaging of spoiled cooking oil. The Auditor-General proposed that the ministry improve its COSS guidelines to tackle said issues. 'There must also be targeted distribution schemes to ensure only eligible households can purchase the subsidised product, and limit it being sold to foreigners and commercial entities. 'The purchase limit should also be reviewed so it aligns with actual needs alongside avoiding large-scale purchases for commercial purposes,' it said. It added that the COSS system must be used holistically to prevent any leakages. 'Periodic internal audits and cross verification with stock books and reporting systems must be made mandatory for manufacturers, packaging companies, wholesalers and traders to ensure a more comprehensive monitoring system,' it said. It also proposed that targeted initiatives like the Sumbangan Asas Rahmah programme be expanded.
The Star
2 days ago
- Business
- The Star
Cooking oil app gets thumbs up at first trial in JB
Vivie Kassim says eCOSS is a great initiative as it was previously hard to get subsidised cooking oil. THE Cooking Oil Price Stabilisation Scheme (eCOSS), currently in its pilot phase in Johor, has received positive consumer feedback as an effective initiative to ensure subsidised cooking oil reaches those who truly need it. The first eCOSS trial was conducted during the Madani Rahmah Sales at Dewan Muafakat Kampung Bakar Batu in Johor Baru. A Bernama survey found the public generally welcoming the government's move to curb leakages in the distribution of the commodity. Above: Asiah says officers helped those who are not tech-savvy. Younger users described the mobile eCOSS app as user-friendly and easy to navigate, although senior citizens appeared to require some assistance. Asiah Saripan, 62, said officials from the Domestic Trade and Cost of Living Ministry (KPDN) guided older participants like her on how to use the app. 'I am not very good with smartphones. 'This is something new, and it may take some time for seniors like me to get used to it,' added the housewife. Vivie Kassim Zuini, 42, said the eCOSS app, which only required users to scan a QR code during purchase, helped prevent misuse and overbuying. 'I think it's a great initiative. Previously, it was difficult to get subsidised cooking oil, especially at small grocery stores. 'This system is more organised and we know it reaches the people who truly need it,' said the housewife. Left: KPDN officer Mohd Zulkiffli Sulaiman (second from right) explaining the eCOSS app to a customer during the Madani Rahmah Sales at Dewan Muafakat Kampung Bakar Batu. — Photos: Bernama J. Anitha, 38, said eCOSS could help the government distribute the subsidised item more efficiently and transparently. 'We're concerned about abuse. 'What's meant for households is sometimes used by foreigners. 'This app helps ensure only eligible recipients get it,' said the flower vendor. Earlier, a survey found that KPDN had set up a booth to assist the public in buying subsidised cooking oil. For those without a phone, identification card, e-mail account or who forgot their password or whose device was incompatible with the eCOSS app, manual registration was made available as an alternative. Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali was quoted as saying that Johor was expected to be the first state to fully roll out eCOSS to end users, enabling all purchases of subsidised cooking oil to be digitally recorded to curb leakages. He said eCOSS verified users' identities through an e-KYC (Know Your Customer) process using MyKad, ensuring access to only eligible Malaysians.
The Sun
08-07-2025
- Business
- The Sun
KPDN expands eCOSS system nationwide to curb subsidised cooking oil leaks
KOTA BHARU: The Ministry of Domestic Trade and Cost of Living (KPDN) is set to expand the Cooking Oil Price Stabilisation Scheme (eCOSS) nationwide to tackle the leakage of subsidised packet cooking oil. The move aims to strengthen supply chain monitoring by recording transactions at every stage, from refineries to retailers and consumers. Minister Datuk Armizan Mohd Ali highlighted concerns over unscrupulous practices by some retailers. 'There are some retailers who act a little unscrupulously, say they receive 10 boxes (of packet cooking oil) a day to sell. They might sell five boxes, then set aside the remaining five for their associates or store them. Some even transfer the oil into bottles and sell it at the prices of bottled cooking oil.' To address this, the eCOSS system will ensure full transparency and tracking of subsidised goods. Purchases made through the eCOSS app will allow for better control and targeted distribution. The minister emphasised the need for risk management to prevent supply leaks and ensure fair access for consumers. - Bernama
