PUTRAJAYA: The Malaysian Anti-Corruption Commission (MACC) is investigating a cartel involved in the distribution and supply of paddy fertiliser contracts linked to a ministry, with a total value of RM1.8 billion.
MACC launched an investigation after conducting a series of raids over the past two days around Kuala Lumpur, including at the organisation's headquarters, the ministry, and nine companies awarded related projects.
According to sources, the project under the ministry, valued at RM1.8 billion, was awarded to the organisation for a period of 30 months from 2021 to 2023.
The source explained that the organisation was responsible for producing paddy fertiliser and distributing it to farmers nationwide through its state-level offices.
"The investigation found that this organisation used two methods to fulfil the government contract: directly purchasing paddy fertiliser from five manufacturing companies and buying raw materials for fertiliser production from four other companies," the source said.
The source added that MACC's investigation will focus on potential corruption offences related to the procurement of fertiliser or raw materials from selected companies.
Additionally, the investigation will look into possible abuse of power, where members of the Board of Directors involved in decision-making may have favoured certain companies.
"MACC has seized documents related to this project at the ministry, the organisation, and the relevant companies, which are now under in-depth review. Six officers from the ministry and the organisation have been summoned by MACC for questioning," the source added.
Meanwhile, MACC chief commissioner Tan Sri Azam Baki confirmed the investigation when contacted.
He did not rule out the possibility of detaining several individuals suspected of being involved to assist with the investigation.
The case is being investigated under Section 16, Section 18, and Section 23 of the Malaysian Anti-Corruption Commission Act 2009.