‘Top’ Mara official, 2 others linked to RM65 million Melbourne property scam, says Aussie paper

Melbourne has a sizeable number of Malaysians, who are among the top property investors in the city. – Flickr pic, June 23, 2015.

A “top” Mara officer, senior official and former politician have allegedly spent millions of government funds to buy an apartment block in Melbourne in a property scam, The Age newspaper said today.

In the exclusive report, the Australian paper alleges that “a group of super-rich Malaysian officials” overpaid by A$4.75 million (RM13.8 million) for an apartment block in the city in 2013.

The trio had allegedly “overbid” for the building, called Dudley International House, from A$17.8 million to A$22.5 million (RM65.3 million), with the difference pocketed as bribes back home.

Australian developers of the property had issued sham invoices for a fake services, such as “consultancy and advisory” from Malaysian firms, the paper said.

Quoting an Australian creditor, who faces bankruptcy after the deal collapsed, tradesman John Bond told The Age: "This deal has ripped off Australians and involve serious corruption but no one has been held to account."

The paper alleges that the same group of high-ranking Malaysians are also involved in about A$80 million worth of Melbourne property, buying up offices and apartment blocks.

About 20,000 Malaysians study in Australia each year, according to government figures, and Melbourne is a popular destination.

Dudley International House (pic) is a student hostel, bought by Mara, a government agency, which provides scholarship to Malaysians studying overseas and loans to Bumiputeras.

The five-storey Dudley International House in the suburb of East Caulfield accommodates up to 115 Mara students attending Monash University.