KUALA LUMPUR: Six individuals of a government-linked company (GLC) cooperative including four with the honorific title, Datuk, have been detained by the Malaysian Anti-Corruption Commission (MACC) for alleged involvement in corruption and abuse of power.
According to a report by The Star, the four Datuks held top positions in a Telekom Malaysia cooperative.
In a statement on Tuesday (Jun 7), MACC said those detained included the chairman, secretary, treasurer, a board of director and his wife and an individual from a supply company, were alleged to have registered the loan borrowers of the cooperative to a multi-level marketing (MLM) company.
"All the suspects were believed to have duped not less than 450 members of the cooperative, resulting in hundreds of thousands of ringgit in commission to the board of directors.
"The members had no knowledge of this," said MACC.
The statement also did not mention the location, time and age of those detained.
According to the statement, the suspects were believed to have abused their power by colluding with the individual from the supply company to allow the cooperative to pre-purchase goods and resell them to the same supplier.
"This transaction was only on paper. When the members wanted to buy the items, they would have to apply for loans from the cooperative and the supplier will sell the goods at a higher price.
"The supplier would then issue invoice for the payment. Part of the profits from the sale would be distributed to the board members involved," said the statement.
Meanwhile, MACC deputy commissioner (Operations) Azam Baki confirmed the arrest but declined to comment further.