Malaysia’s IJM denies money-laundering allegations as anti-graft agency freezes US$3.9 million in probe
Following the investigation, which comes just days after the construction giant emerged as a takeover target for conglomerate Sunway Bhd, IJM also denied reports that it is under investigation by the UK Serious Fraud Office.
KUALA LUMPUR: Malaysia construction giant IJM Corporation Bhd has rejected allegations of multi-billion ringgit money laundering and denied reports it is under investigation by UK authorities.
This comes as the Malaysian Anti-Corruption Commission (MACC) confirmed freezing bank accounts totalling RM15.8 million (US$3.9 million) as part of an ongoing probe into the company.
“The company and its UK associates are not aware of any investigation by the UK's SFO (Serious Fraud Office). We have not been approached and any reports suggesting otherwise are inaccurate,” IJM said on Tuesday (Jan 20) as quoted by Malaysian news outlet The Edge.
MACC had earlier confirmed on Monday that investigations into IJM are under way, reportedly linked to money-laundering allegations involving RM2.5 billion.
Local media reported that the probe came after the UK SFO had launched an investigation into alleged money laundering and corruption involving multi-billion ringgit transactions linked to two executives from IJM.
The corporation also denied the money-laundering allegations involving the two individuals, describing the claims as unfounded.
Earlier reports had said that a member of IJM’s top management who holds a Tan Sri title - one of the most prestigious federal honours - as well as a company adviser had been identified as people of interest.
“We wish to clarify that the individual referred to in the articles as an ‘adviser’ to IJM was, in the past, engaged on a professional basis to provide advisory services in relation to a limited number of corporate transactions,” IJM said.
It added that the group's chairman, Krishnan Tan - who holds the Tan Sri title - had met officers from MACC earlier in the day on Tuesday and continues to cooperate fully, while other personnel who have been requested to provide information are also assisting the authorities.
IJM also added that its investments in the UK have been primarily financed through facilities raised from Malaysian financial institutions, with the funds remitted to the relevant special-purpose vehicles in the UK.
“These investments have undergone the company’s established business evaluation and internal governance processes,” it said on Tuesday, as quoted by local media.
“IJM remains committed to upholding strong standards of corporate governance, transparency and integrity.”
The construction group also said that operations remain unaffected by the ongoing inquiries.
On Tuesday, MACC said that it had conducted an investigation involving IJM over issues related to corporate governance, procurement processes, financial transactions and ownership of overseas assets.
On Jan 19, the graft busters' Special Operations Division conducted investigations involving two individuals from IJM Corp's top management, according to local media platform, the New Straits Times.
A total of 55 personal and company bank accounts with a total amount of RM15.8 million were frozen as part of the investigation.
The anti-graft agency said that inspections and searches, acting under “Ops Heart”, were carried out at four separate locations, including the residence and office of one of IJM’s top management personnel.
The investigation is also focusing on efforts to trace and seize other assets suspected to have been acquired through money-laundering activities, the New Straits Times reported.
Nine statements have been recorded, including from two of the company’s top management personnel. No arrests were made.
MACC chief commissioner Azam Baki said that the investigation is being carried out under Section 16 of the MACC Act 2009 and Section 4(1) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.
The investigation comes just days after IJM emerged as a takeover target for conglomerate Sunway Bhd in a deal valued at about RM11 billion.
Sources cited by Bernama also said that MACC is looking into allegations of share price manipulation, which allegedly occurred when Sunway was in the process of acquiring IJM.
An MACC source said that the anti-graft agency has approached Sunway to assist in its investigation.
Founded in 1983, IJM Corporation Bhd is one of Malaysia’s leading conglomerates with core businesses in construction, property development, industry and infrastructure concessions, according to Malay Mail.
