Are 23 Nanotag cases worth RM117million?

ARCHIVES 2009

By admin-s On Sep 26, 2009

By All That I Know..

2008 Annual Report reveals that ONLY 23 cases were charged under Nanotag programme and with only 0.5mil ltrs diesel seized.

Excerpt from MDTCC 2008 Annual Report, posted on its website on 17 September 2009:

Introduction of Nanotag Technology
The Nanotag approach is used to mark subsidised diesel at all 36 depots nationwide

Programme Objectives
To ensure that all subsidised diesel are nanotagged and reaches only those eligible; and

To curb the exploitation and smuggling of subsidised diesel overseas more stringent laws and joint enforcement

Increasing the Effectiveness of Enforcement
The Control of Supplies (Amendment) Act 2006 was enforced on 14 September 2006. It imposes a heavier fine on individuals or companies that are found guilty of exploitation of controlled supplies, specifically subsidised diesel; and

To Control of Supplies (Marking of Scheduled Article) Order 2006, was gazetted on 16 October 2006 to curb any individual or parties that are not eligible for possession, or placed under his care or control, at any one time, scheduled goods (diesels) that are tagged.

At a cost of RM117mil a year, Nanotag programme is a 5-year programme which commenced in 2006.

From the outset, the programme seems to meet its objectives.

Source: MDTCC Biennial Report 2006-2007 http://www.kpdnkk.gov.my/index.php?option=com_content&task=blogcategory&id=191&Itemid=553

No doubt there’re still many questions left unanswered such as;

1. After full implementation of Nanotag in 2007, why was there an 81% drop in seizure volume equivalent to 3.29mil ltrs worth RM6mil (see table below)?

Source: MDTCC Biennial Report 2006-2007 http://www.kpdnkk.gov.my/index.php?option=com_content&task=blogcategory&id=191&Itemid=553

Summary:

The figures show in eight months prior to implementation of Nanotag, ministry was able to seize more diesel than after the implementation of Nanotag.

2. The source of subsidised diesel come from only 3 sectors; petrol station, fishermen and transport. So only these 3 sectors can abuse the subsidy.

Prior to implementation of Nanotag, Ministry had taken stern actions against errant petrol station retailers who abuse subsidised diesel. In another word, Ministry went straight to the source.

Pertinent question to be asked is, after the implementation of Nanotag, how many errant petrol station retailers have been taken action by the Ministry? I won’t be surprise if the answer is “none”.

This is because the amended Control of Supplies Act 2006 only targets the end users who are not eligible for subsidised diesel and not the suppliers.

It’s like trying to eradicate drug abuse by going after the drug addicts instead of the kingpin!