Police Bust Illegal Fertilizer Factory in Penang, Seize RM771,000 in Assets

KUALA LUMPUR – Authorities have dismantled an illegal fertilizer processing operation that had been flying under the radar for six years following a coordinated raid under “Ops Khas Taring Bravo 3” yesterday.

The operation, led by the Northern Brigade General Operations Force (PGA) in collaboration with the North Seberang Perai District Police, Penang’s Ministry of Domestic Trade and Cost of Living (KPDN), and the Seberang Perai City Council (MBSP), resulted in the arrest of five individuals and the seizure of goods valued at RM771,000.

Northern Brigade PGA Commander, SAC Balveer Singh, confirmed that the suspects include three Malaysian men aged between 34 and 51, and two foreign nationals from Indonesia and Myanmar in their 30s and 40s.

“Our investigation revealed that the facility had been operating without any legal permits or approvals from the authorities for over half a decade,” Balveer said in a statement.

Beyond the illegal business operations, urine tests conducted during the raid showed that the three local suspects tested positive for heroin. Meanwhile, the foreign workers were found to be without valid identification documents.

The syndicate’s primary strategy involved sourcing subsidized chemical and compound fertilizers through illicit channels. These materials were then processed and mixed with other substances to artificially increase the volume. The final product was repackaged into new bags and distributed to the commercial market for agricultural use.

During the search, officers confiscated:

  • 47,000 kilograms of processed fertilizer.
  • Industrial processing machinery and equipment.
  • A transport lorry used for distribution.

The factory owner is facing multiple charges, including violations under Section 21(1) of the Control of Supplies Act 1961 and Section 55B of the Immigration Act 1959/63 for employing undocumented workers. Additionally, MBSP has issued compounds for operating a business without a valid license.

The local suspects are also being investigated under Section 15(1) of the Dangerous Drugs Act 1952 for drug consumption, while the foreign nationals remain in custody for immigration offenses.

This crackdown highlights the ongoing efforts by Malaysian authorities to curb the misappropriation of subsidized goods and the proliferation of unregulated industrial activities.

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