THE Malaysian Anti-Corruption Commission (MACC) has obtained a court order to extend the remand of a former chief executive officer of a government statutory body and a company holding chairman, as investigations continue into alleged misconduct involving a share transaction linked to a public institution.
Anti-corruption authorities have intensified investigations into a major share transaction scandal involving public funds, after securing a five-day extension of remand for two key suspects amid mounting evidence of alleged financial misconduct.
The extension, granted until 16 April 2026 by Magistrate Ainul Izzati Mohd Jamili at the Putrajaya Magistrates’ Court, follows the expiry of an earlier four-day detention period.
The suspects, a former chief executive of a government-linked statutory body and a company chairman, were initially detained last week.
The Malaysian Anti-Corruption Commission (MACC) is investigating allegations that the pair colluded with board members and shareholders in the sale of shares to a statutory body, in a deal now believed to have caused significant losses to public funds.
Authorities said the case falls under Section 16 of the MACC Act 2009, covering bribery and corruption offences, while also involving elements of criminal breach of trust and money laundering.
Senior Director of Investigations Datuk Mohamad Zamri Zainul Abidin confirmed the arrests, noting that the probe has expanded to examine financial flows and the involvement of multiple parties linked to the transaction.
Investigators have identified what they describe as a structured modus operandi involving the abuse of position in managing a share sale financed by public funds.
The transaction is believed to have been executed at inflated and unjustifiable valuations, with estimated losses exceeding RM300 million.
Sources said the suspects are alleged to have exercised full control over the deal by determining pricing and terms while simultaneously acting as both proposers and approvers during closed-door negotiations with minority shareholders.
Preliminary findings also point to the acceptance of bribes and the laundering of illicit proceeds through offshore financial channels.
Funds are believed to have been routed through nominee accounts and complex beneficial ownership arrangements to conceal the identities of recipients.
Part of the funds, estimated at approximately RM30 million, is suspected to have been reinvested into publicly listed companies on Bursa Malaysia in an apparent attempt to legitimise the transactions.
Financial tracing has revealed cross-border movements involving six bank accounts in Singapore, with six transactions totalling more than US$48 million.
Investigators have also identified an additional transfer of around US$3.3 million in Labuan linked to two beneficial owners of a company that received funds originating from the transaction.
Further scrutiny is being directed at two bank accounts in the United Arab Emirates, believed to be associated with the former chief executive, involving deposits of approximately US$10,000 and AED37,000, or about RM80,000.
Authorities said investigations are ongoing as they work to map the full extent of the financial network and establish accountability among all parties involved in the alleged scheme. - April 12, 2026
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