PUTRAJAYA: A former president and managing director of a bank is among four people detained for alleged corruption.
The 49-year-old suspect, who is a Datuk, was arrested by anti-graft officers in Kuala Lumpur late Tuesday.
All the four suspects will assist the Malaysian Anti-Corruption Commission (MACC) with investigations into a RM400mil financial loan scandal.
They were produced before the Magistrate’s Court here yesterday and were remanded until April 2 under Section 117 of the Criminal Procedure Code.
According to sources, the four were alleged to have received about RM8mil in commission for approving a financial loan for a non-existent project.
“A bogus project is created with the purpose of securing a financial loan with inside help.
“After the loan was approved and the money disbursed, the company was shut down. The project was not implemented after that, ” said the source.
It is learnt that the main suspect, upon receiving gratification, expedited the approval of the loan.
“The loan was let through without a feasibility study or due diligence. It was done without following bank procedures, ” added the source.
MACC chief commissioner Datuk Seri Azam Baki confirmed the arrests, saying that investigations were carried out under Section 16 of the MACC Act.