Latest news with #OpWhite
New Straits Times
21-07-2025
- Business
- New Straits Times
MACC turns spotlight on civil servants in RM120mil milk cartel scandal
KUALA LUMPUR: Graft busters investigating the RM120 million supply of substandard milk powder to a government department are focusing on possible corruption and abuse of power involving officials suspected of colluding with the cartel implicated in the scheme. A Malaysian Anti-Corruption Commission (MACC) source told the New Straits Times that investigators were zeroing in on individuals within the department that received the milk powder. "We are intensifying the probe and looking at this new angle," the source said, adding that more persons of interest could be identified as the case progresses. "Investigations are ongoing, and individuals are being identified based on the statements obtained." So far, investigators have seized a substantial number of key documents, including tender papers, government contracts, and financial records. They believe the documents will shed light on the inner workings of the supply chain and uncover irregularities in the procurement process. "The MACC is focusing on the department that received the milk powder," the source added. It was reported that on July 8, anti-corruption officers swooped in on the cartel, believed to be masterminded by a family, supplying milk powder to a government department. The product failed to meet Sirim's safety and quality standards. The cartel, led by a married couple and their son, had secured contracts worth RM120 million. It is believed they had been supplying milk powder since 2019 – possibly earlier. The following day, investigators raided a milk processing factory and two companies. The crackdown, dubbed 'Op White', was an inter-agency operation involving the MACC, the Inland Revenue Board, and Bank Negara Malaysia. Raids were carried out at three residences and a company premises in Kuala Lumpur. These locations are believed to contain documents related to supply contracts dating back to 2019, but the couple's company is believed to have monopolised milk powder supply tenders for government departments for over two decades. Sources said three family members, believed to be the masterminds behind the monopolisation of milk supply tenders, had their statements recorded by MACC officers over the past two days. "In addition to the trio, shareholders and suppliers involved in delivering milk powder to government hospitals and prisons were also called in for questioning," a source said. Investigators believe the company supplied substandard milk powder between 2021 and 2024. From this year through to 2027, the company holds contracts to supply milk powder in the southern and east coast zones. Investigations revealed that most of the companies awarded government tenders to supply milk powder had no prior experience in the production, processing, or distribution of food and beverages. So far, 75 bank accounts – comprising 24 personal and 51 company accounts – with a total value of approximately RM174 million have been frozen.
The Sun
10-07-2025
- Business
- The Sun
MACC probes firm for suspected milk powder tender price manipulation
KUALA LUMPUR: A company supplying milk powder is being investigated by the Malaysian Anti-Corruption Commission (MACC) for suspected manipulation of tender prices by between 10 and 50 per cent depending on the zone, apart from monopolising the market in supply contracts to a government department. According to sources, the company, owned by a married couple with their sons as the main shareholders, is believed to have been involved in supplying products worth RM120 million that did not meet the standards of the Standards and Industrial Research Institute of Malaysia (SIRIM). 'The focus of the investigation is on tax issues, corruption and monopoly practices in the supply of milk powder tenders to a government department. 'The investigation is also looking into the ownership of the company, including the network of other distributors that play a role in the milk powder supply chain,' according to the source. Sources said so far 75 accounts have been frozen involving 24 individual accounts and 51 company accounts with a total value of RM174.6 million. 'Various documents involving the milk powder supply contract and financial documents were also seized, including mobile phones and laptops to enable further investigations to be carried out,' he said. Sources said so far 10 witnesses have been called to give statements to MACC, while another son of the couple who own the company is expected to appear at the MACC office next Tuesday or Wednesday. 'There have been no new arrests so far, but investigations are still continuing, including against the management of a government department that are directly involved in the milk powder supply contract,' he said. The media yesterday reported that three family members suspected of being the mastermind behind a milk supply tender monopoly for a government department over the past two decades were arrested under Op White here, last Tuesday. MACC chief commissioner Tan Sri Azam Baki reportedly said the family was suspected of being the mastermind behind a RM120 million milk powder supply cartel involving a government department. He said all the premises raided were suspected of storing all documents related to milk powder supply contracts since 2019 following MACC's investigation into two owners and a director of a milk powder supplier company that is believed to not meet SIRIM's standards. The investigation is being conducted under Section 16 of the MACC Act 2009 in addition to identifying criminal elements under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLATFPUAA). – Bernama
New Straits Times
09-07-2025
- Business
- New Straits Times
MACC raids factory, companies suspected of involvement in milk powder cartel
KUALA LUMPUR: Malaysian Anti-Corruption Commission officers raided a milk processing factory and two companies suspected of being behind a cartel supplying substandard milk powder to a government department. Investigations have revealed that most of the companies awarded the government tenders to supply the milk powder had no prior involvement in the production, processing or distribution of food and beverages. Seventy-five bank accounts, comprising 24 individual accounts and 51 company accounts, with a total value of approximately RM174 million have since been frozen. MACC Chief Commissioner Tan Sri Azam Baki said the raids were a follow-up to information obtained from the investigation into three members of a family on Tuesday. "The raid on the milk processing factory was aimed at inspecting documents related to the milk powder supply contracts they had secured, including financial documents. "The raids conducted today are a continuation of the investigation involving the family members, and initial findings also revealed that most of the companies awarded the government tenders to supply the milk powder had no prior involvement in the production, processing, or distribution of food and beverages," he told the New Straits Times. Azam said the background of these companies includes furniture, electrical, contractor, real estate, transportation, and civil engineering businesses. "Some of them earned profits of between 10 to 50 percent from supplying the milk powder. On Tuesday, the MACC Special Operations Division in an operation codenamed Op White and conducted with the Inland Revenue Board (IRB) and Bank Negara Malaysia (BNM), raided three residences and one company in the Kuala Lumpur area. The company, owned by a husband-wife team, was said to have been supplying milk powder to a government department for decades. However, the milk powder was believed to have not met Sirim standards. MACC is also said to be investigating the son of the couple. Meanwhile, MACC Special Operations Division senior director Datuk Mohamad Zamri Zainul Abidin did not rule out the possibility of a monopoly in the supply of milk powder to government departments. "So far, statements from six individuals have been recorded. "The case is being investigated under Section 16 of the MACC Act 2009, the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act (AMLATFPUAA) 2001, and the Income Tax Act 1967," he said.
New Straits Times
09-07-2025
- Business
- New Straits Times
RM120mil milk powder cartel busted
KUALA LUMPUR: Anti-corruption officers swooped inyesterday to raid a cartel masterminded by a family supplying milk powder which did not meet Sirim safety and quality standards to a government department. 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.
