MACC busts fertiliser cartel involving projects worth RM1.8bil

PETALING JAYA: The Malaysian Anti-Corruption Commission (MACC) has launched an investigation into the existence of a cartel involved in the distribution and supply of fertiliser contracts for rice paddies, valued at an estimated RM1.8bil, within an organisation under the control of a ministry.

The MACC conducted a series of raids over the past two days in the Kuala Lumpur area, including at the organisation's headquarters, the ministry, and nine companies awarded related projects.

Sources reveal that the project under the ministry, valued at approximately RM1.8bil, was awarded to the organisation for a 30-month period from 2021 to 2023.

The organisation is responsible for producing rice paddy fertiliser and distributing it to farmers nationwide via its offices at the state level.

“Investigations found that the organisation used two methods to fulfil the government contract: directly purchasing rice paddy fertilisers from five manufacturers and buying raw materials to process the fertiliser from four other companies,” the source told Sinar Harian on Tuesday (Oct 29).

The MACC investigation will focus on suspected corruption in the procurement of fertiliser or raw materials from selected companies, the source added.

Additionally, the investigation is looking into possible abuse of power, where board members may have been involved in decision-making regarding the selection of favoured companies.

According to sources, the MACC has seized documents related to the project at the ministry, organisation, and relevant companies.

Six officers from the ministry and the organisation have also been summoned by the MACC for questioning.

Meanwhile, MACC Chief Commissioner Tan Sri Azam Baki confirmed the investigation, noting that several individuals suspected of involvement may be detained to assist with inquiries.

The case is being investigated under Sections 16, 18, and 23 of the Malaysian Anti-Corruption Commission (MACC) Act 2009.