An MACC source said the probe also identified elements of abuse of power, with the former CEO believed to have set the terms and pricing of the share acquisition, and acted as both proposer and approver in closed-door negotiations with minority shareholders, thereby exercising absolute power over the entire process.
“Preliminary investigations indicate elements of bribery and money laundering through the transfer of transaction proceeds to offshore entities to conceal the identities of recipients, including the use of nominee accounts and beneficial ownership structures.
“A portion of the funds, estimated at RM30 million, is believed to have been reinvested in publicly-listed companies on Bursa Malaysia to disguise the funds as legitimate investments,” said the source.
The source said the funds were found to have flowed through six bank accounts in Singapore via six transactions worth over US$48 million (RM190.32 million), and one transaction worth over US$3.3 million in Labuan, involving two beneficial owners of companies that received payments from public funds.
MACC is also looking into two bank accounts in the United Arab Emirates (UAE) believed to belong to the former CEO, involving around US$10,000 and AED37,000 (RM40,121).
“Overseas fund flows are estimated to exceed US$51.3 million in total, believed to involve companies incorporated in the British Virgin Islands (BVI),” said the source.
MACC special operations division senior director Zamri Zainul Abidin said the commission is expanding the scope of its investigations with the aid of overseas authorities, including in Singapore, BVI and UAE, to scrutinise cross-border transactions and identify the assets involved.
This follows MACC’s raids on two valuation firms yesterday, a day after it arrested the statutory body’s former CEO and the chairman of a holding company, who allegedly conspired with the directors and shareholders of a company in a share sale transaction.
A source said MACC recorded statements from 10 witnesses, with seven more expected to be called in the near future.
Zamri said the investigation is focussed on offences under Section 16 of the MACC Act 2009 for bribery, as well as criminal breach of trust.
A source also said preliminary investigations found that the share sale involved an overvaluation and that the transaction caused losses of more than RM300 million in public funds.
The offences are alleged to have been committed between 2022 and 2023.