PETALING JAYA: Five suspects, including active and retired enforcement agency members, have been arrested by the Malaysian Anti-Corruption Commission (MACC) following an ongoing probe into a chain of massage parlours.
Of those detained, three active duty and one retired member were remanded for four days until Feb 2 at the Putrajaya magistrate's court on Friday (Jan 30).
Sources said the suspects, aged between 30 and 60, were detained on Thursday (Jan 29) after presenting themselves for statements at the MACC headquarters in Putrajaya.
One of the suspects was released on bail while the rest were remanded. All suspects are believed to have received bribes from a massage centre business to facilitate operations and ease foreign worker permit processes.
To date, the MACC has recorded statements from 16 witnesses to assist in the investigation.
The MACC also conducted six searches within the Klang Valley, including offices and residences.
A total of 124 bank accounts were seized, valued at RM13.3mil. This massage centre network is believed to have used a two-tier accounting system in which 80% of cash sales were not reported, resulting in an estimated tax leakage of RM7.56mil per year.
It is suspected that bribe payments amounting to RM2.7mil per year were paid to several officers from various enforcement agencies, including local authorities, as protection money.
MACC Special Operations division senior director Mohamad Zamri Zainul Abidin confirmed the arrest and said the case is being investigated under Section 16 and 17 of the MACC Act 2009.
He added that investigations will also identify elements related to other criminal offences, particularly money laundering. Previously, some RM18.8mil in luxury vehicles and assets were seized in connection with the alleged corruption involving the prominent chain.
On Monday (Jan 26), the MACC Special Operations Division conducted an integrated operation with the Inland Revenue Board (LHDN) against the chain, which operates 32 outlets nationwide and is believed to have been in operation since 2023.
Investigators uncovered alleged bribery payments made to enforcement officers and local authorities to facilitate the company’s operations.
Several individuals have been identified and further action is being taken.
