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THE Malaysian Anti-Corruption Commission (MACC) has confirmed the arrest of an individual allegedly linked to a diesel supply and tender cartel in Sarawak, amid ongoing investigations into a decade-long fuel monopoly that may have cost the state tens of millions of ringgit.
“There is a diesel smuggling case in Sibu, and arrests have been made,” said MACC Chief Commissioner Tan Sri Azam Baki. “I cannot disclose the number of arrests at this stage. The details are embargoed as I will be holding a press conference soon.”
He added, “Let the investigations and enforcement actions proceed first. We will reveal what we have uncovered in due time.”
Azam made the statement to reporters following the signing of a Memorandum of Understanding between MACC and the National Co-operative Movement of Malaysia (ANGKASA) at Wisma Ungku A. Aziz on Wednesday.
The arrest comes in the wake of an exclusive report by *Sinar Harian*, which alleged that a company had operated as a cartel controlling the supply of diesel throughout Sarawak for over a decade. The operation is believed to have caused financial losses amounting to tens of millions of ringgit.
The cartel allegedly secured contracts by offering below-market prices, undercutting major fuel producers. According to the report, the network maintained its hold by bribing insiders in exchange for tender awards.
These tenders and contracts reportedly involved the supply of commercial diesel to a state government-linked company. Authorities believe that portions of this subsidised diesel were later siphoned off and smuggled to offshore vessels, further exacerbating the financial loss.
MACC has not yet released specific names or further details of the investigation but has assured the public that significant developments will be made public in due course. - September 10, 2025
