MACC Uncovers Abuse Of Power And Money Laundering Involving Former CEO Of Statutory Body

PUTRAJAYA, April 11 (Bernama) -- The Malaysian Anti-Corruption Commission (MACC) has uncovered the modus operandi of abuse of power and money laundering involving a former chief executive officer (CEO) of a government statutory body in the sale of shares using public funds.

According to sources, the latest follow-up investigation found that the individual in question is believed to have set the terms and purchase price of the shares and acted as both proposer and approver in closed negotiations with minority shareholders, thus having full control over the entire process.

"Preliminary investigations also found elements of bribery and money laundering through the transfer of transaction proceeds to offshore entities to conceal the recipients' identities, including the use of nominee accounts and beneficial owners.

"Investigations also found that a part of the funds, estimated at around RM30 million, was believed to have been reinvested in publicly listed companies on Bursa Malaysia, to disguise the financial flow as legitimate investments," they said.

Sources also said that the flow of funds was detected involving six bank accounts in Singapore with six transactions amounting to over USD 48 million (RM225.6 million), in addition to one transaction of around USD 3.3 million in Labuan involving two beneficial owners of companies receiving payments from public funds.

"Also under investigation are two bank accounts in the United Arab Emirates (UAE), believed to belong to the former CEO. It involves approximately USD 10,000 and AED37,000 (RM47,000). The total foreign fund flow is estimated to exceed USD 51.3 million and is believed to involve companies established in the British Virgin Islands (BVI)," they said.

In other related developments, the sources said that an additional six individual accounts, worth approximately RM11 million, have been frozen, bringing the total amount frozen to approximately RM16.8 million.

Meanwhile, MACC Special Operations Division senior director Datuk Mohamad Zamri Zainul, when contacted, confirmed that the investigation is still ongoing.

He said the MACC is expanding the scope of the investigation, including seeking cooperation from foreign authorities such as Singapore, BVI, UAE, and Labuan to examine cross-border transactions and trace related assets.

-- BERNAMA