PETALING JAYA: The remand period for a company chairman and a former chief executive officer of a government-linked statutory body has been extended as the Malaysian Anti-Corruption Commission (MACC) continues its probe into a share trading scandal that led to losses exceeding RM300mil.
According to sources, both suspects had their remands extended until April 16 following an application at the Putrajaya Magistrate’s Court.
Both individuals had previously been remanded until yesterday.
MACC Special Operations Division senior director Datuk Mohamad Zamri Zainul Abidin confirmed the matter.
Investigations into the stock trading scandal uncovered the movement of funds overseas and also revealed an alleged modus operandi involving abuse of power in share sale transactions using public funds.
It is believed that the former CEO had determined the terms and pricing of share acquisitions, while also acting as proposer and approver in closed-door negotiations with minority shareholders.
This effectively gave the suspect absolute control over the entire process.
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.
Around RM30mil of the funds were allegedly reinvested into companies listed on Bursa Malaysia in an attempt to disguise the financial flows as legitimate investments, according to sources.
Both suspects, believed to be in their 40s and 50s, were arrested on April 8 when they turned up to give their statements at the MACC headquarters in Putrajaya.
