MACC probes padi fertiliser cartel

KUALA LUMPUR: The Malaysian Anti-Corruption Commission (MACC) has initiated an investigation into the existence of a cartel distributing and supplying padi fertiliser contracts in an association under the control of a ministry estimated to be worth RM1.8bil.

According to an MACC source, several raids had been made by the commission in the past two days around Kuala Lumpur, including at the association’s headquarters, ministry and nine companies that obtained the projects.

The projects under the ministry totalling RM1.8bil had been awarded to the association over a period of 30 months from 2021 to 2023.

“The association is responsible for producing padi fertiliser and distributing it to farmers around the country through the association’s offices in every state.

“Investigations revealed that the association used two methods to fulfil the government contracts – purchasing padi fertiliser directly from five producers and purchasing raw materials to produce fertiliser from four companies,” the source said, Bernama reported.

The source added that investigations were focused on corrupt practices linked to the procurement of fertiliser or raw materials from selected companies.

“Investigations will also include possible abuse of power by the board of directors of those involved in selecting the companies of interest.

“MACC has seized documents related to the projects at the ministry, association and companies. Six ministry and association officials involved have been called up by the MACC for interviews,” the source added.

MACC chief commissioner Tan Sri Azam Baki confirmed the investigation when contacted and did not reject the possibility that several individuals suspected of involvement might be arrested to facilitate investigations.