Its director Junaidah Arbain said the enforcement team discovered the diesel stored in four large tanks aboard a vessel during the raid.

“A 70-year-old local man, believed to be a crew member of the ship, was arrested. His statement was recorded to assist in the ongoing investigation,” she said in a statement today.

Junaidah said the case is being investigated under Section 20 (1) and Section 21 of the Control of Supplies Act 1961 which deal with the removal and possession of controlled goods.

She said those convicted of the offence could be fined not more than RM1 million.

“We reiterate our commitment to conducting continuous inspections and monitoring of activities involving controlled goods on this duty-free island to prevent any misuse or illegal handling of such goods,” she said.