KUALA LUMPUR: The Malaysian Anti-Corruption Commission (MACC) has arrested two more people in connection with alleged cartel activities involved in the distribution and supply of padi fertiliser contracts worth RM1.8 billion.
An MACC source said one of those detained was the main suspect, a manager in the promotions and marketing division of a farmers association under a ministry.
The other suspect is the chairman of a foreign company.
"Both men in their 40s and 50s were arrested after giving their statements to MACC at the commission's headquarters yesterday evening," said the source.
"Preliminary investigations showed that the main suspect received a quote from the company's representative, to seek the association chairman's approval.
"The association's chairman then gave the go-ahead to appoint the foreign company without either a price comparison or going through from the board," said the source.
The source said investigations also showed that the fertiliser supply contract, worth around RM60 million and done via direct negotiation, was ironed out in only six days in June 2022.
"This was done despite the foreign company having never obtained any other work from the association previously," said the source.
Both suspects have been remanded for five days until Nov 4 for further investigation.
The remand order was issued after an application by MACC at the Putrajaya Magistrate's Court this morning.
It was understood that MACC's suspicions were raised after learning that the company awarded the contract had been inactive for eight years,
It was also understood that the association claimed that the contract was rushed through as it was an "emergency purchase."
According to sources, the project under the ministry, valued at RM1.8 billion, was awarded to the association for a period of 30 months from 2021 to 2023.
It was learnt that association was responsible for producing padi fertiliser and distributing it to farmers nationwide through its state-level offices.
Meanwhile, MACC chief commissioner Tan Sri Azam Baki confirmed the arrests and said the case is being investigated under Section 16 (a)(a) of the MACC Act 2009.
To date, three people have been arrested, including a company marketing executive.
On Wednesday, Agriculture and Food Security Minister Datuk Seri Mohamad Sabu said he welcomed the MACC probe and pledged the ministry's full cooperation.