PETALING JAYA – Four Datuks who held top positions in a Telekom Malaysia cooperative were detained over suspicions of graft.
Also detained were the wife of another cooperative member and a businessman who is also a main vendor.
All six suspects – aged between 44 and 66 – were picked up in a sting operation in several areas around the Klang Valley from 8am Tuesday.
Malaysian Anti-Corruption Commission deputy chief commissioner (operations) Datuk Azam Baki confirmed the arrests.
Azam said the suspects would be held overnight in Putrajaya and remanded on Wednesday to assist in the probe.
Sources said the suspects were believed to be involved in abuse of power and corruption, raking in huge amount of ill-gotten gains in the process.
“We believe they are involved in several dubious dealings resulting in many cooperative members suffering undue losses.
“Investigations showed the suspects worked discreetly with a supplier to buy daily necessities in bulk using money from the cooperative.
“The goods are then sold back to the same supplier and these transactions are carried out on paper only,” said a source.
It is learnt that members who wanted to make purchases had to borrow from the cooperative first before the goods were delivered by the supplier.
Invoices are then issued to the cooperative seeking payment.
“The supplier will charged a higher price for the goods and the profits from these dubious dealings are channelled back to the suspects.
“Checks also showed the suspects abused their power by registering borrowers from the cooperative under a MLM (multi-level marketing) direct selling company.
“Due to this, over 450 cooperative members are generating commission worth hundreds of thousands of ringgit for the suspects without their knowledge,” added the source.