KUALA LUMPUR — Malaysian graftbusters have crippled a syndicate that embezzled over RM100 million (S$34 million) in federal funds by billing an unnamed agency for made-up work.

The Malaysian Anti-Corruption Commission (MACC) said it exposed the syndicate in a special operation two days ago, during which it arrested nine people including a senior ministry official.

“MACC investigations showed the syndicated operated by directing the finance division of an agency under the ministry to issue payments to at least 14 companies operated by the syndicate members for non-existent activities.”

“No claims were submitted by the companies to the agency in question, yet the senior official played a role in ensuring payments were made to the companies involved,” the MACC said in a statement on Saturday (March 19).

The official was allegedly rewarded by the companies via, among others, payments made via cheque deposits into his personal account.

It added that the syndicate has been operating at least since 2010, and that investigations so far indicated that no less than RM100 million was paid out for the fictitious activities.

The ministry official is suspected of receiving at least RM20 million from the sum embezzled, allowing him to live beyond his means to extent of being able to purchase several luxury vehicles, a RM400,000 watch, and RM300,000 in beddings, among others.

All nine individuals were currently remanded until March 24 for further investigations under Section 17(a) of the MACC Act 2009 for offering or receiving bribes as well as the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.

The commission also seized 69 accounts containing RM8.3 million, homes, and vehicles as part of its investigation. THE MALAY MAIL ONLINE