A TELEKOM Malaysia cooperative suffered losses amounting to RM23 million due to fraud and abuse of power, the Star Online reported today.
Utusan Online cited a source as saying that Koperasi Telekom Malaysia Bhd or Kotamas suffered losses because the vendor supplying goods had issued fraudulent invoices worth RM30 million.
The source said initial investigations by the Malaysian Anti-Corruption Commission showed that the vendor had paid between RM1 million and RM2 million in kickbacks to each Kotamas board member.
“They have been doing this since two years ago,” the source told Utusan.
The vendor was the only company dealing with Kotamas since 2015.
“Having just one vendor makes it easy for the officials to arrange for kickbacks, which we believe were very substantial.
“We have managed to uncover their modus operandi,” a source told The Star.
Six individuals, including the cooperative’s chairman, secretary, treasurer and a board member were remanded yesterday for five days.
The other two are the director of a company, which acts as the vendor, and the wife of the detained Kotamas board member.
Meanwhile, TM said Kotamas was a non-TM entity and was not part of the TM Group.
“The cooperative, whose members comprise current and former TM employees, is run by its own appointed management,” it said in a statement yesterday.
“TM is not involved in the management and business or operations of Kotamas,’’ it added.