Ops Karen exposes diesel mafia: Millions laundered, fuel smuggled — Sabah & Sarawak at the centre of shocking syndicate

KUALA LUMPUR: A substantial RM190.8 million was seized by the Malaysian Anti-Corruption Commission from an extensive diesel trading and money laundering group operating within Sabah and Sarawak.

Codenamed “Ops Karen,” the special operation was initiated after years of clandestine inquiries and surveillance, deploying an exclusive squad of 21 MACC Anti-Corruption Tactical Squad officers. They were assisted by the Malaysian Armed Forces, which positioned choppers and combat vessels to capture dubious vessels along seaside waters.

MACC chief commissioner Tan Sri Azam Baki revealed that the criminal network had siphoned off diesel supplies and laundered illicit proceeds over a ten-year period, leading to an estimated RM247 million loss in government revenue.

“This was a well-organised and deeply entrenched operation, protected by secret societies and involving licensed businesses,” Azam said during a special press conference at MACC headquarters.

The crackdown was carried out under the Multi Agency Task Force, which included the Inland Revenue Board, Bank Negara Malaysia, the Domestic Trade and Cost of Living Ministry, and the Marine Department. A total of 100 MACC officers were mobilised to ensure the operation’s success.

High-profile arrests and major seizures

Six suspects were arrested, including two individuals bearing the title “Datuk”. The group included four company directors and two managers from a firm with a valid diesel supply licence.

Authorities also recorded statements from 36 witnesses as part of ongoing investigations under the MACC Act 2009 and the Anti-Money Laundering Act 2001. The haul from Ops Karen was massive:

• 498 bank accounts frozen, holding RM110 million
• Five vessels seized, valued at RM52 million
• 4.5 million litres of diesel, worth RM9.7 million
• 17 luxury vehicles, totalling RM5.6 million
• 40 plots of land, valued at RM11.3 million
• Nine luxury watches, worth RM1.2 million
• A 500-gram gold bar valued at RM260,500
• RM156,479 in foreign currencies

Syndicate shielded by secret societies

According to Azam, the syndicate had been shielded by underground groups, which helped smuggle subsidised diesel from fishing zones in Sarawak into black markets, both domestic and international.

The government is optimistic that the total recovery—including fines, tax arrears, and penalties—will exceed RM247 million, effectively doubling the initial loss estimate.

Severe consequences ahead

Companies linked to the operation face serious consequences, including asset forfeiture, licence revocation, and blacklisting by the Domestic Trade and Cost of Living Ministry—on top of potential criminal prosecution.

“This is a message to all who think they can abuse government subsidies for profit,” Azam warned. “We will come after you—with force and precision.”

Ops Karen stands as one of the largest anti-corruption operations in recent years, reflecting the MACC’s heightened focus on tackling economic crimes with deep national impact.