More than US$51.3 million (approximately RM240 million) in offshore fund movements has been uncovered following investigations into a controversial share transaction scandal involving a former chief executive officer (CEO) of a government-linked statutory body.
The latest findings come as the Malaysian Anti-Corruption Commission (MACC) expands its probe into alleged abuse of power in share sale dealings involving public funds. Authorities are now focusing on how the transactions were structured and approved.
Sources revealed that the former CEO is believed to have exercised full control over the entire transaction process, including determining the terms and pricing of the share acquisition. This concentration of authority reportedly allowed the individual to act as both proposer and approver in closed-door negotiations with minority shareholders, creating what investigators described as a situation of “absolute power”.
Preliminary investigations have also uncovered elements of bribery and money laundering, with proceeds allegedly channelled to offshore entities to conceal the identities of recipients. These transactions are said to involve nominee accounts and beneficial ownership structures designed to obscure the flow of funds.
Part of the funds is believed to have been reinvested into publicly listed companies on Bursa Malaysia, with an estimated value of around RM30 million. This move is suspected to have been an attempt to disguise illicit funds as legitimate investments.
Further investigations identified six bank accounts in Singapore, involving six transactions totalling over US$48 million. Additionally, a separate transaction worth approximately US$3.3 million was traced to Labuan, involving two beneficial owners linked to payments derived from public funds.
Authorities have also detected two bank accounts in the United Arab Emirates believed to be connected to the former CEO, containing roughly US$10,000 and AED37,000 (about RM80,000). The broader fund trail is suspected to involve companies registered in the British Virgin Islands.
Following these developments, enforcement actions have intensified, with six additional individual bank accounts—worth approximately RM11 million—frozen. This brings the total value of frozen assets to around RM16.8 million to date.
Senior Director of the MACC’s Special Operations Division, Mohamad Zamri Zainul, confirmed that investigations are ongoing. He said the commission is widening its scope, including working closely with foreign authorities.
“Collaboration is being carried out with several countries and jurisdictions, including Singapore, the British Virgin Islands, the United Arab Emirates and Labuan, to examine cross-border transactions,” he said, adding that the priority remains tracing assets and identifying the financial network involved.
Earlier reports stated that the MACC had remanded a former CEO of a government-linked statutory body along with a holding company chairman to assist in investigations. Both individuals are suspected of conspiring with board members and shareholders in the sale of shares to the statutory body.
