The Insolvency Department will freeze the accounts and seize all assets belonging to the Penang state government-formed voluntary patrol unit (PPS).
This comes after the entity was officially declared as illegal yesterday.
According to Home Ministry secretary-general Mohd Khalid Sharif, this is after Home Minister Ahmad Zahid Hamidi declared PPS illegal under Section 5 of the Societies Act 1966.
Mohd Khalid said the minister declared the PPS illegal for "conducting activities harmful to public peace".
"Under the law, the minister has full discretion to declare any organisation illegal if he believes that it is being used to bring harm to national safety, public peace and," he added in the statement.
Read more here: http://www.malaysiakini.com/news/279491