SHAH ALAM - The Malaysian Anti-Corruption Commission (MACC) has exposed fraudulent activities by a rice supply company in Kedah that have disrupted the distribution and sales of the country's staple food.
According to sources, the company in question had secured a rice supply contract from a state government-owned agriculture company worth over RM100 million annually, approximately seven years ago, for rice supplies in Peninsular Malaysia.
It said that based on the contract awarded, the company had obtained a bank loan of about RM30 million to finance the project several years ago.
"The company director had conspired with a board member of the state government-owned company to confirm the purchase and delivery of approximately 28,000 metric tonnes of rice per year, estimated to be worth over RM100 million.
"However, the rice supply contract was not honoured by the company as per agreement.
"Moreover, the company in question is believed to have received about RM30 million through several transactions," he said today.
According to sources, the suspects were also said to have submitted documents with false details to the bank for loan financing application purposes.
Meanwhile, MACC's Senior Director of Investigations, Datuk Seri Hishamuddin Hashim, confirmed the investigation when contacted and said the case was being investigated under Section 18 of the MACC Act 2009.