RM100mil rice supply fraud uncovered, says source

PETALING JAYA: The Malaysian Anti-Corruption Commission uncovered fraudulent activity involving the supply of 28,000 tonnes of rice worth RM100mil by a company in Kedah, leading to a disruption in the distribution and sale of the commodity.

According to a source, the company received contracts amounting to RM100mil yearly from a state-owned agricultural firm about seven years ago to supply rice throughout Peninsular Malaysia.

"Based on that contract, the company obtained a RM30mil bank loan to fund the project," the source told Bernama on Tuesday (Oct 10).

According to the source, a director of the company allegedly colluded with a board member of the state-owned firm to buy and distribute 28,000 tonnes of rice worth RM100mil a year, which was never supplied.

"The company is said to have received RM30mil through several transactions," said the source on Tuesday (Oct 10).

The source also told Bernama that the documents submitted by the suspect to secure the bank loan allegedly contained false information.

When contacted, MACC senior investigation director Datuk Seri Hishamuddin Hashim said the case is being investigated under Section 18 of the MACC Act 2009, which relates to the offence of submitting false claims.