Malaysia’s anti-graft blockbuster: Who is in the crosshairs?

[KUALA LUMPUR] Malaysia’s anti-graft agency has turned up the heat, as it unveiled on Tuesday (Sep 9) a barrage of probes that stretched from gold bars and cash hauls linked to former prime minister Ismail Sabri Yaakob, to an unexpected move seeking the UK’s help in tracing assets allegedly tied to former prime minister Dr Mahathir Mohamad.

The Malaysian Anti-Corruption Commission (MACC) also gave updates on probes involving a debt-laden but once high-flying oil and gas company, a controversial expressway project and senior officials at Kuala Lumpur City Hall.

The announcements covered investigation progress, recent asset seizures, forfeitures and impending charges.

Dr Mahathir – alleged UK-linked assets

The most eye-catching disclosure was MACC’s plan to seek the UK government’s help in obtaining information on assets linked to Dr Mahathir.

At a media briefing on Tuesday, MACC chief commissioner Azam Baki said the investigation involving Dr Mahathir was still ongoing. “We are obtaining detailed information from external parties, particularly the UK authorities, regarding assets believed to be owned by him,” he added.

Dr Mahathir served as premier from 1981 to 2003, and again from 2018 to 2020.

In a Facebook post on Thursday, Dr Mahathir said he was “surprised” to learn that he reportedly owns assets in the UK. “Please let me know, so I can claim this asset and after that, I will give it to the poor,” he said.

He claimed that Prime Minister Anwar Ibrahim was using the MACC investigation to delay a defamation suit. Dr Mahathir alleged that Anwar has stalled for two years on his RM150 million (S$45.7 million) suit, filed in May 2023, over corruption claims.

Sapura Energy – potential RM12 million recovery

MACC is moving to recover approximately RM12 million from its investigation into Sapura Energy (now known as Vantris Energy).

Azam said the move has been approved by the deputy public prosecutor, and the money will be returned to the government soon.

The recovery stems from one of two ongoing investigations into Sapura Energy. The first, a case from 2018, involves allegations that a director of Sapura Petroleum and his family misappropriated around RM12 million.

MACC has already frozen assets, including two luxury homes worth RM5.5 million.

The second case, which is expected to take longer, involves a US$3.3 million bribe allegedly given to a chief executive officer of a Sapura Energy subsidiary in 2011 by a foreign party.

MACC is currently seeking legal assistance from foreign jurisdictions to proceed with this investigation.

Ismail Sabri – RM169 million cash and millions in gold bullion

MACC confirmed that more than RM169 million in cash and RM7 million in gold bullion, seized from former prime minister Ismail Sabri and his former political secretary Mohammad Anuar, now officially belongs to the government.

Azam said Ismail Sabri and Mohammad Anuar decided not to contest the forfeiture application, allowing the funds to be returned to the state.

The cash seized from Mohammad Anuar included a mix of currencies, such as ringgit, Singapore and US dollars, Swiss francs, euros, yen and British pounds.

Apart from cash, the investigation also led to the seizure of 16 kg of gold bullion, estimated to be worth RM7 million.

While the assets have been forfeited, the deputy public prosecutor has yet to decide whether to press charges against any parties involved in the case, said Azam.

Maju Expressway extension project – nine more to be charged

MACC has expanded its investigation into alleged graft linked to the Maju Expressway extension project (MEX II), confirming that nine more people will face charges related to criminal breach of trust and money laundering.

Azam said they were involved in joint transactions with Maju Holdings director Abu Sahid Mohamed, who recently pleaded not guilty to multiple charges of criminal breach of trust and money laundering involving more than RM452 million.

Azam further revealed that Abu Sahid will face an additional seven charges under Section 403 of the Penal Code, related to misappropriation of RM145 million.

Former MEX II director Yap Wee Leong is expected to be charged over 18 offences, including nine under the MACC Act for corruption involving RM209 million, and nine for money laundering involving RM387 million. MACC anticipates that all individuals will be charged by the end of the month.

The MEX connects Kuala Lumpur to Putrajaya, with the MEX II extension planned to link Putrajaya directly to Kuala Lumpur International Airport. Construction of the 18 km MEX II began in early 2017 and was initially scheduled for completion in December 2019, but was stalled due to financial difficulties and cash-flow problems.

The extension project has been beset by controversy and delays, with cost transparency and financing arrangements coming under intense scrutiny, following allegations of false claims and mismanagement involving hundreds of millions of ringgit.

City Hall officer arrested and RM17.5 million frozen

Authorities have frozen more than RM17.5 million in funds from 37 bank accounts as part of a corruption probe into a Kuala Lumpur City Hall (DBKL) IT project. This action follows the arrest of four people, including a senior DBKL officer.

Azam said the frozen funds were held in personal, corporate and stock accounts. Investigators also seized nearly RM1.2 million in various currencies, along with two luxury cars valued at RM650,000, and designer handbags and shoes worth RM100,000.

The investigation, which began on Aug 26, is linked to a project dating back 11 years. So far, MACC has recorded statements from 16 individuals.

The arrested senior officer holds a Jusa B grade (second-highest rank in Malaysia’s public service), and the seized items included high-end vehicles such as a Lexus RX 500h and a Mini Cooper.