MAJOR CLEAN-UP AT CORRUPTION-RIDDLED COMPANIES REGULATOR CCM – AS DIRECTOR, 2 OTHERS ARRESTED BY MACC, TO BE REMANDED TODAY

ANTI-GRAFT officers will seek a remand order tomorrow against a Companies Commission of Malaysia (CCM) director and two other individuals at the Putrajaya magistrate’s court, said sources.

They said the three people, aged between 37 and 55, were arrested in Kuala Lumpur and Petaling Jaya earlier today.

They were arrested for allegedly abusing an internal system at CCM without complying with the Digital Signature Act 1997.

“As a result, this has brought losses amounting to RM30 million to the government between 2017 and 2018,” the source told The Malaysian Insight.

The source said the CCM director is attached to an internal department. Of the two individuals, one is a senior CCM officer, while the other is linked to an information technology firm.

The IT company is a subsidiary of Pos Malaysia Bhd.

Their arrest is the culmination of months of investigation by the Malaysian Anti-Corruption Commission on CCM’s awarding of contracts since 2009 that allegedly bypassed the open-tender process.

MACC is expected to arrest more people.

In recent months, MACC officers had raided three companies, two government offices and a legal firm in two states, apart from calling in several senior CCM officers for questioning.

The raids were in connection with the RM500 million Business Reporting System of Malaysia project awarded to Formis Network Services Sdn Bhd, MACC sources told The Malaysian Insight previously.

The five-year contract for the project, with a mandatory five-year extension clause, was reportedly the result of direct negotiations.

The government could reportedly lose more than RM250 million in the deal.

CCM is also being investigated over the purchase of its office buildings, with an estimated total value of RM30 million around the country.

Source said all projects awarded between 2014 and 2018 without going through the proper process are under investigation.

“All (the projects) were handled by senior CCM officers at its headquarters and state offices.”

The source said project files and financial documents were seized and three people were questioned.

THE MALAYSIAN INSIGHT