MACC arrests director, MBI Kedah exec over rare earth mining

The MACC has reportedly arrested a senior official at Menteri Besar Kedah Incorporated (MBI Kedah) as well as a company director in relation to alleged illegal mining operations for rare earth elements (REE).

According to a report by Harian Metro today, the graftbuster arrested the 63-year-old MBI Kedah top executive in Alor Setar and a 40-year-old director in Kuala Lumpur, yesterday evening.

Both are being remanded for three days until Friday to facilitate investigations into allegations of abuse of power bribery involving over RM13 million.

“The remand orders were respectively issued by Magistrate Wan Shahida Abd Rahim at the Alor Setar Magistrate’s Court and Magistrate Che Hashim at the Shah Alam Magistrate’s Court, following remand applications by the MACC,” a source was quoted as saying.

MBI Kedah is a state-owned entity under the Kedah government.

The source reportedly claimed the company was conducting illegal mining operations under the protection of “certain authorities” since 2020.

Bribe over RM13m?

“Investigations found several payments suspected to involve bribery totalling over RM13 million paid to the company as inducement to protect the illegal mining activities from 2020 to 2023,” the source claimed.

The source reportedly said the director is believed to have received approval to develop timber latex clone plantations in two compartments in Kedah in 2016, which would entail replanting the rubber trees in the logging area.

In 2020, the same company supposedly applied to the state government for permission to conduct REE mining operations in the same compartments.

“But so far, no approval has been given by the state government for the company’s application to conduct mining activities,” the source was quoted as saying.

MACC chief commissioner Azam Baki reportedly confirmed both arrests, adding the case is being investigated under Sections 17 and 23 of the MACC Act 2009.

Section 17 deals with the giving and acceptance of bribes, while Section 23 deals with civil servants who abuse their office or position for gratification.

Upon conviction, each offence is punishable with up to 20 years imprisonment; as well as a fine at least RM10,000 or five times the value of the gratification, whichever is higher.

Caretaker Kedah Menteri Besar Muhammad Sanusi Md Nor

Yesterday, the MACC was reported to be investigating illegal REE mining activities in Bukit Enggang, Sik, following complaints by Kedah Umno, local residents and groups critical of caretaker Kedah Menteri Besar Muhammad Sanusi Md Nor.

However, the Bernama report yesterday said MACC deputy chief commissioner (operations) Ahmad Khusairi Yahaya refused to comment when asked whether it would summon the menteri besar for questioning in the near future.

Today, Sanusi said he has yet to be summoned by the MACC so far.

“But rumours and news about it have been spreading since two to three days ago... isn’t this strange and suspicious? Are they trying to seek the truth and uphold the law or smear one’s image?

“I feel that their real intention is to ruin (my) credibility to gain advantage for the state elections,” Sanusi said. - Mkini