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 (below) 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.

Following the declaration, Mohd Khalid said, all activities using PPS’ name and symbols are also deemed illegal.

"Those responsible for any PPS activity will be investigated and charged," he said.

"I urge all to cooperate and assist the government in combatting PPS activities which go against existing laws."

Police arrested more than 300 PPS members after they claimed it is illegal as it is not registered with the ROS.

Also arrested was Penang executive councillor in charge of the PPS, Phee Boon Pooh.

In response to the police action, Penang Chief Minister Lim Guan Eng said that the state is willing to go to court to prove the legality of the unit.

Police on Sunday revealed that there is still no instuction by the Attorney-General's Chambers on the mass arrests in August.