MACC arrests GLC CEO for graft (Updated)

KUALA LUMPUR: Two officials of a government-linked company (GLC) dealing in electronic chip-based passports were arrested by the Malaysian Anti-Corruption Commission (MACC) yesterday for graft involving the supply of
e-passports in an African country.
They were the GLC’s 58-year-old chief executive officer, who is a Datuk, and a 36-year-old international sales manager, who were arrested at their homes in Tropicana Indah, Petaling Jaya and Taman Desa, Jalan Kelang Lama respectively.
MACC director of investigations Datuk Simi Abdul Ghani said the arrests raise concerns as the GLC has access to official secrets, which may be a threat to national security.
“It is extremely worrying as there is a possibility of the suspects trading such classified information,” he said when providing details on the case, that has been codenamed “Ops Guinea”.
It was learnt MACC has also frozen about RM1 million found in the bank accounts of the Datuk and his wife.
Sources said the suspects are believed to have abused their powers and allegedly solicited bribes from a private company based in the Republic of Guinea for the supply of e-passports by the GLC between 2013 and 2015.
Felda Investment Corporation (FIC) Sdn Bhd, a subsidiary of Felda, has been a 25% shareholder of the GLC since 2013. FIC’s shares in the GLC are estimated to be worth RM200 million.
The foreign company had apparently signed a 15-year deal with the GLC for the supply of chip-based e-passports to the Guinean government.
Under the business agreement, a part of the purchase price was to be returned to the Guinean government. To facilitate the arrangement, a private company in Guinea was appointed as the GLC’s “local partner” and to receive a US$5 (RM22.20) commission for each e-passport supplied.
However, after the deal was signed, the CEO had allegedly approached the private company owner to negotiate a separate deal.
In order to ensure they “stay in business over a long term” and have the contract renewed without hindrances, the CEO allegedly asked for US$1 from the commission be paid to him.
The local partner agreed and was told by the CEO that the commission would be paid in cash.
However, the local partner apparently has not received any payment so far although the CEO and the manager had signed documents acknowledging the receipt of their cut.
Sources said preliminary investigations showed the suspects, who have worked in the GLC for nearly seven years, have allegedly received bribes of about RM500,000 in Euros and US dollars, although investigators believe the figure could be much higher.
MACC is expected to produce both men before the Putrajaya magistrate’s court today to seek remand orders.
The men are being investigated under Section 16 (a) of the MACC Act and Section 4 (i)(b) of the Anti-Money Laundering and Anti-Terrorism Financing Act 2001.