MACC launches probe into alleged RM1.8b paddy fertiliser cartel

KUALA LUMPUR (Oct 29): The Malaysian Anti-Corruption Commission (MACC) has initiated an investigation into the existence of a cartel in distributing and supplying paddy fertiliser contracts in an association under the control of a ministry estimated to be worth RM1.8 billion.

According to an MACC source, several raids have been made by the commission in the past two days around Kuala Lumpur, including at the association’s headquarters, ministry and nine companies that obtained the projects.

The projects under the ministry totalling RM1.8 billion have been awarded to the association in a period of 30 months from 2021 to 2023.

“The association is responsible to produce paddy fertiliser and to distribute it to farmers around the country through the association’s offices in every state.

“Investigations revealed that the association used two methods to fulfil the government contracts, which is to purchase paddy fertiliser directly from five producers and to purchase raw materials to produce fertiliser from four companies,” the source said, adding that investigations are focused on corrupt practises linked in the procurement of fertiliser or raw materials from selected companies.

“Investigations will also include possible abuse of power where the board of directors of those involved in selecting the companies of interest.

“MACC has seized documents related to the projects at the ministry, association and companies. Six ministry and association officials involved have been called up by the MACC for interviews,” they said.

Meanwhile, MACC chief commissioner Tan Sri Azam Baki confirmed the investigation when contacted and did not reject the possibility that several individuals suspected of involvement might be arrested to facilitate investigations.

He added that the case is being investigated under Section 16, Section 18 and Section 23 of the MACC Act 2009.