Malaysia

MACC smashes RM2.5 million procurement cartel in sweeping multi state raids

A current and former director of a northern government agency are among 13 individuals remanded after anti-graft raids uncover a massive bribery scheme to monopolise lucrative public contracts

Updated 2 months ago · Published on 17 Jun 2026 11:21AM

MACC smashes RM2.5 million procurement cartel in sweeping multi state raids
The suspects allegedly conspired to manipulate the state agency's direct-award contracts and official quotations between 2024 and 2026 - June 17, 2026

THE Malaysian Anti-Corruption Commission (MACC) has dismantled a sophisticated public procurement cartel following the detention of thirteen individuals, including a sitting director and a former director of a northern government agency, suspected of soliciting and receiving bribes totalling approximately RM2.5 million.

The suspects, comprising eight civil servants and five civilians who own local business entities, allegedly conspired between 2024 and 2026 to manipulate the state agency's direct-award contracts and official quotations.

Initial investigations revealed that participating contractors were required to pay kickbacks ranging between 10 and 15 per cent to intermediaries, who then channelled the illicit funds to the senior agency directors to guarantee the monopoly of projects through cartel-controlled companies.

The massive enforcement action, codenamed Op Drain, was executed by the commission's investigation division across twenty-five distinct locations, including private residences, corporate offices, and government premises spanning Kuala Lumpur, Selangor, Pahang, and Perak.

The coordinated raids culminated in the seizure of RM1.5 million in liquid cash, luxury jewellery valued at an estimated RM1 million, a high-end timepiece, two motor vehicles, and a high-powered motorcycle.

Following their arrests on Monday evening when they arrived to give statements at the Perak anti-graft headquarters, the suspects, consisting of ten men and three women aged between their thirties and sixties, were brought before the Ipoh Magistrates Court.

Magistrate Anis Hanini Abdullah subsequently granted the formal remand applications filed by the enforcement officers.

Three of the detainees, including two civil servants and a corporate director, were remanded for a brief period of two days ending today.

The remaining ten suspects face a five-day remand extension scheduled to run until Saturday as investigators deepen their probe under Section 17(a) of the Malaysian Anti-Corruption Commission Act 2009, MACC said in a statement on Wednesday. - June 17, 2026

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