Four arrested for misappropriating RM596mil in sukuk funds

PUTRAJAYA: Four individuals have been arrested in connection with alleged misappropriation involving an Islamic bonds (sukuk) funds worth RM596mil.

The sukuk involved the implement a project related to registration, hiring and recording foreign workers’ biometric at a ministry.

It is learned that among the suspects are a director, a chief financial officer and a shareholder of three companies that were directly involved in developing the system, while the occupation of the other suspect is unknown.

The four male suspects are aged between 40 and 55 and were arrested at the Malaysian Anti-Corruption Commission headquarters late on Tuesday (March 15) afternoon.

Three of the suspects were remanded for three days until March 17 after Magistrate Irza Zulaikha Rohanuddin allowed the MACC’s application.

The fourth suspect was released on bail.

Sources said the sukuk was managed by a local bank to finance the project where all expenses and revenue derived from it must be credited to a special account.

"However, the special account was then changed to another account which investigators believe was purposely created early last year.

"Graft investigators suspect that the account was to avoid paying all principals as well as profits to the sukuk holders," said a source with knowledge of the case.

It is learnt that the concession agreement between the government and the company was signed in July 2011 for a period of 12 years.

The sukuk was expected to reach its maturity in May this year.

"We believe the opening of another account had resulted in losses amounting to millions of ringgit to the sukuk holders," said the source.

MACC chief commissioner Tan Sri Azam Baki confirmed the arrest.