KUALA LUMPUR: Investigations by graft busters into a stock trading scandal involving a former chief executive officer (CEO) of a government-linked statutory body have uncovered the movement of funds overseas.
Sources said the probe revealed an alleged modus operandi involving abuse of power in share sale transactions using public funds.
"The former CEO is believed to have determined the terms and pricing of share acquisitions, while also acting as both proposer and approver in closed-door negotiations with minority shareholders, effectively exercising absolute control over the entire process.
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“Preliminary investigations also indicate elements of bribery and money laundering, with proceeds from the transactions transferred to offshore entities to conceal the identities of recipients, including through the use of nominee accounts and beneficial ownership structures.
“Part of the funds are believed to have been reinvested into companies listed on Bursa Malaysia, amounting to approximately RM30mil, in an attempt to disguise the financial flows as legitimate investments,” a source said.
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Further investigations found that the fund flows involved six bank accounts in Singapore, with six transactions totalling more than US$48mil, as well as a separate transaction of about US$3.3mil in Labuan involving two beneficial owners of companies that received payments from public funds.
Sources added that two bank accounts in the United Arab Emirates (UAE), believed to be linked to the former CEO, are also being scrutinised, involving approximately US$10,000 and AED37,000 (about RM80,000).
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In total, overseas fund flows are estimated to exceed US$51.3mil, with transactions believed to involve companies incorporated in the British Virgin Islands.
In a related development, authorities have frozen an additional six individual accounts worth about RM11mil, bringing the total amount frozen to approximately RM16.8mil.
Meanwhile, MACC Special Operations Division senior director Datuk Mohamad Zamri Zainul, when contacted, confirmed that investigations are ongoing.
He said the commission is expanding the scope of the probe, including seeking cooperation from foreign authorities in Singapore, the British Virgin Islands, the UAE and Labuan to examine cross-border transactions and trace related assets.
