MACC detains four senior Felda officials (Updated)

KUALA LUMPUR: Two former senior officials of Felda Holdings Berhad, including a "datuk", were arrested by the Malaysian Anti-Corruption Commission (MACC) today for alleged power abuse and misappropriation of RM47.6 million in funds meant for a multi-million ringgit fish breeding project with a Korean company.
Besides the two, MACC also arrested three serving staff of the company.
The datuk, 57, – a former general manager of the company – was arrested along with his ex-deputy general manager, 53.
The others picked up were a 30-year-old officer of the project, a 38-year-old senior officer of Felda's property investment arm in London and a 33-year-old administration assistant.
MACC investigators arrested the suspects between 11.30am and 1.30pm at several locations in the Klang Valley under an operation codenamed Ops Caviar.
Sources said the suspects were involved in a sturgeon fish breeding technology transfer project which was proposed in 2013.
It is learnt that the company's board of directors had tasked the then deputy general manager to prepare a comprehensive report on the investment involved for the project in Pahang.
However, before the report was produced to the board of directors, the suspect set up a company called Felda Carviative Sdn Bhd (FCSB) without the knowledge of Felda's decision-makers.
In January 2014, the suspect, who is the director of FCSB, and the datuk went into a business deal with a Korean-based sturgeon fish breeding company and signed a contract worth US$45 million (RM146.5 million).
Prior to entering the deal, the deputy general manager, who was in charge of the finance unit, had allegedly approved and disbursed US$10 million (RM47.6 million) of Felda funds to the Korean company through FCSB.
The contract was for two agreements, namely technology transfer and design and building.
MACC investigators also learnt that the project had not been given the green light by the Pahang Department of Enviroment.
MACC Director of Investigations Datuk Simi Abd Ghani, who confirmed the arrests, said investigators had also seized documents related to the alleged misappropriation of funds.
The suspects are expected to be taken to the Putrajaya magistrate's court today where the MACC will seek a remand order to detain them for further investigations.