KUALA LUMPUR: The Malaysian Anti-Corruption Commission (MACC) has uncovered a cartel that supplied milk powder worth RM120mil to a government agency, despite the product failing Sirim standards.
MACC raided three homes and a company in a special operation with the Inland Revenue Board (LHDN) and Bank Negara Malaysia (BNM) here on Tuesday (July 8).
MACC chief commissioner Tan Sri Azam Baki said two company owners and a company director, who are a married couple and their child were under investigation.
He said that the raided premises contained documents believed to be supply contracts for milk powder since 2019.
He added that the companies owned by the couple are believed to have monopolised the procurement of milk powder supply for 20 years.
“A total of three suspects aged 40 to 70, a husband and wife and their child, have been called to the Kuala Lumpur MACC office at 10am on Tuesday through Ops White that was conducted by the MACC special operation division with LHDN and BNM.
“All the suspects, through their companies, are suspected to have supplied milk powder to a government department throughout Peninsula Malaysia that did not meet the food safety standard. The supply contracts were dated from 2021 to 2024 and 2024 to 2027, involving two zones - Southern and East Coast zones,” he told Sinar Harian on Tuesday.
Azam said that the raid was conducted based on intelligence information gathered in three months.
He added that another child of the married couple, also a director of the company, who was out of the district for work during the raid, has been ordered to return to have his/her statement taken.
MACC has frozen 75 bank accounts, including 24 individual accounts and 51 company accounts, involving assets totalling RM156mil.
“Investigation is now directed to Section 16 of the MACC Act 2009, as well as other criminal elements under Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 for money laundering, and the Income Tax Act 1967,” he said.
