RM120mil milk powder cartel busted
The cartel led by a married couple and their son had gotten contracts worth RM120 million.
The cartel is believed to have been supplying the milk powder since 2019 or even earlier.
Malaysian Anti-Corruption Commission Chief Commissioner Tan Sri Azam Baki said a joint operation dubbed Op White was carried out yesterday in collaboration with the Inland Revenue Board and Bank Negara Malaysia. The operation saw raids carried out at three residences and a company premises in Kuala Lumpur.
"These premises are believed to hold documents related to the supply of contracts stretching back to 2019," he told the New Straits Times.
Though the documents go back only as far as 2019, Azam said the company, owned by the couple, was believed to have monopolised the government's milk powder supply tenders for over two decades.
"The three suspects, aged between 40 and 70, were called in for questioning at the MACC headquarters in Kuala Lumpur earlier today (yesterday).
"Investigators believe the company supplied substandard milk powder to a government department between 2021 and 2024. From 2024 to 2027, their contracts cover only the southern and east coast zones."
Azam said the raids were based on intelligence gathered over the past three months.
"All the suspects were brought in for questioning and relevant documents were seized. Another son of the couple, who is a company director, is out of town on work matters and has been told to return for questioning."
In yesterday's operation, MACC also froze 75 bank accounts. They comprised 24 individual and 51 corporate accounts, with total assets amounting to RM156 million.
Investigations are focused on Section 16 of the MACC Act 2009 related to corrupt practices, with parallel probes being conducted under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 and the Income Tax Act 1967.
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