PETALING JAYA: A former bank president and three others have been arrested by the Malaysian Anti-Corruption Commission (MACC) over a RM400 million loan for a non-existent project.
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A source in the know said the former bank president, a “Datuk” also served as the bank’s managing director. The four suspects are aged between 49 and 53.
“They were arrested around Kuala Lumpur yesterday evening. They are understood to have accepted bribes amounting to S$3.1 million as a commission for approving a RM400 million loan for a company.
“This was a very slick move by those involved. The company worked with people inside the bank to come up with a non-existent project and apply for funding.”
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Once the loan was approved, the company folded and the project was not implemented.
“The former bank president gave special permission for the loan to be approved. It did not follow procedures, there was no due diligence.”
MACC chief commissioner Azam Baki confirmed the arrests. He said the case was being investigated under Section 16 of the MACC Act.
All four suspects were brought to the Putrajaya magistrates’ court for a remand order where a three-day remand order was granted.-FMT