KUALA LUMPUR: The Malaysian Anti-Corruption Commission (MACC) has uncovered a fraudulent scheme involving a rice supply company in Kedah, which has disrupted the distribution and sale of the nation's staple food.
According to sources, the company secured a rice supply contract from a state-owned agriculture firm worth over RM100 million annually approximately seven years ago for rice distribution in Peninsular Malaysia.
It was reported that, under the contract, the company obtained a bank loan of approximately RM30 million to finance the project several years ago.
"The company's director allegedly conspired with a board member of the state-owned company to confirm the purchase and delivery of approximately 28,000 tonnes of rice per year, valued at over RM100 million, but the supply was never made.
"The company is said to have already received an approximate sum of RM30 million through several transactions," said the source.
The source further noted that the suspect was also alleged to have submitted documents with false details to the bank for the loan application process.
Meanwhile, MACC senior investigation director Datuk Seri Hishamuddin Hashim confirmed that the case was being probed under Section 18 of the MACC Act 2009.