He added that the “irregularities” were linked to three subsidised cooking oil packaging companies in Perak, and wholesale companies in Johor and Selangor.

“The chain began with a subsidised cooking oil refinery in Ipoh, which supplied 550 tonnes of cooking oil a month to three packaging companies in Perak.

“After packaging, these companies were supposed to distribute the cooking oil to the registered retailers,” he said at a press conference.

“What happened was these companies conspired to package only a small portion of the cooking oil they received from the refinery and distribute it to the registered retailers.

“Meanwhile, the majority of the oil was diverted to wholesale companies in Selangor and Johor,” he added.

He said the wholesale companies then bottled the subsidised cooking oil, and sold it at non-subsidised prices.

Azman said coordinated raids were carried out on Aug 9, in Putrajaya, Perak, Selangor and Johor, leading to the arrest of two men, aged 20 and 30, who were employees of a Johor-based company.

In addition to cooking oil, authorities seized business documents, including purchase and sales invoices, cooking oil subsidy claim documents and RM163,000 in cash, as well as various equipment and vehicles used, Azman said.

He added that investigation papers had been opened under the Control of Supplies Act 1961 and the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.

Azman said the skimming had disrupted subsidised cooking oil supplies nationwide.