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EAIC Calls for Stricter Oversight to Prevent Subsidised Fuel Leakages

Kuala lumpur: The Enforcement Agency Integrity Commission (EAIC) has highlighted several high-risk governance misconduct forms that could arise in managing an energy supply crisis amid conflicts in West Asia, especially regarding the distribution of aid and fuel subsidies. Its chairman, Tan Sri Dr. Ismail Bakar, pointed out that such risks become evident when enforcement actions are executed under urgent conditions to prevent leakages of public resources, including subsidies for RON95 petrol, diesel, and liquefied petroleum gas (LPG).

According to BERNAMA News Agency, the EAIC, which oversees 20 enforcement agencies, has identified three primary risk areas during crisis periods. These include the smuggling of subsidised fuel, particularly in border regions where enforcement officers might misuse their authority or fail to adhere to standard operating procedures (SOPs). Dr. Ismail highlighted that officers at border entry points might allow vehicles with subsidised fuel to pass unchecked, leading to successful smuggling by irresponsible entities.

Furthermore, Dr. Ismail noted the risk of fuel supply misappropriation among enforcement personnel, where fuel meant for operational purposes is used for personal benefit. The commission has received complaints and conducted investigations into such cases, underscoring the need for stricter internal controls in managing operational resources.

Effective monitoring at petrol stations and high-risk areas is vital in combating subsidised fuel leakages, Dr. Ismail emphasized. This includes addressing cases where individuals misuse subsidies by allowing others to use their identity cards. He praised the government's decision to temporarily deploy Royal Malaysia Police (PDRM) personnel at 151 high-risk petrol stations as a proactive measure to bolster enforcement and curb fuel subsidy leakages.

Dr. Ismail remarked that while these measures are promising, they are still in the early stages and require ongoing monitoring to evaluate their effectiveness in reducing subsidy leakages. He also noted that EAIC has not yet detected any clear signs of power abuse or governance misconduct since the government's intervention, but emphasized the importance of strengthening complaint monitoring as subsidised material management remains high-risk during crises.

Dr. Ismail called for improved coordination among enforcement agencies through a structured approach to avoid overlapping duties and implementation delays. He suggested establishing a crisis coordination or command centre at the national or ministerial level to ensure centrally coordinated instructions and orderly execution of responsibilities.

Establishing clear SOPs related to enforcement duties is essential to strengthen governance during crises, Dr. Ismail added. This includes defining jurisdictions, workflows, and official communication channels to clarify roles and prevent functional overlaps that could hinder operational effectiveness.

Dr. Ismail recommended centralised information sharing through digital systems or shared platforms, enabling agencies to act on uniform data and reduce inconsistencies and enforcement action delays. This approach would enhance monitoring efficiency and facilitate quicker detection of integrity issues, particularly in crisis situations requiring immediate responses.

Appointing liaison officers or 'focal persons' for each agency is also crucial for coordinating inter-agency actions and ensuring accurate and consistent information conveyance. Dr. Ismail stated that EAIC will continue proactive integrity risk assessments through monitoring and targeted investigations to identify potential enforcement system weaknesses, focusing on misconduct prevention and integrity strengthening in government intervention policy implementation.

Transparency of information to the public is vital for effectively implementing emergency policies or targeted assistance without causing confusion, Dr. Ismail concluded. Coordinated crisis communication through an inter-agency verification process is necessary to prevent conflicting statements or the dissemination of inaccurate information, which could undermine public trust. Any coordination weaknesses or information inaccuracies could raise governance and integrity compliance concerns.

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