PUTRAJAYA: Five individuals, including four members of a company's board of directors, have been remanded for five days in connection with an alleged fraud involving public investment funds.
They are suspected of diverting about RM104 million from a company linked to them to several private companies owned by proxies.
Magistrate Irza Zulaikha Rohanuddin granted the remand order until Jan 21 at the Putrajaya magistrate's court today.
Sources revealed the five suspects aged in their 50s and 60s, were arrested at around 7pm yesterday when they appeared to give evidence at the MACC headquarters here.
"The commission received several complaints and information related to criminal activities carried out by a trustee company licensed under the Trust Companies Act 1949 administered by Companies Commission of Malaysia.
"The company was found to be using funds collected from investors for the personal benefit of individuals who conspired in this criminal activity," said the source.
The source further revealed that around RM104 million in funds was detected to have been diverted from the company to several private companies owned by proxies.
MACC chief commissioner Tan Sri Azam Baki, when contacted, confirmed that the arrests were made under Op Trust.
"The case is being investigated under Section 18 of the MACC Act 2009.
"The modus operandi required a high level of expertise among MACC officers in order to follow the money trail.
"The investigation also aims to help the government strengthen public trust in the regulatory body that issues licenses for trustee companies, in addition to creating a clean and safe platform for potential investors," he said.