MACC uncovers RM100mil rice supply fraud
(FMT) – The Malaysian Anti-Corruption Commission (MACC) has uncovered fraudulent activities carried out by a rice supply company in Kedah which has disrupted the distribution and sale of the country’s staple food.
According to a source, the company secured a contract from a state-owned agricultural company valued at over RM100 million per year to supply rice in Peninsular Malaysia.
The source said that based on the contract, signed seven years ago, the company obtained a bank loan for RM30 million.
The suspect is alleged to have submitted documents containing false information to the bank.
“The director of the company allegedly conspired with a board member of the state-owned firm to confirm the purchase and delivery of 28,000 tonnes of rice per year worth over RM100 million, but the rice was never supplied (by the company),” said the source.
When contacted, MACC senior investigations director Hishamuddin Hashim confirmed the investigation and said the case was being investigated under Section 18 of the MACC Act 2009.
This section relates to the offence of submitting false claims.