Op Drain: MACC nabs 13 including govt agency director over ‘contract cartel’ scandal

IPOH, June 17 — The Malaysian Anti-Corruption Commission (MACC) has secured remand orders for 13 individuals, including a current and former director of a government agency, following allegations of a RM2.5 million bribery scheme involving public contracts.

Operating within northern Peninsular Malaysia, the group allegedly solicited kickbacks from contractors to ensure projects were funnelled to specific companies controlled by cartel agents. This system allowed the syndicate to monopolise both direct-negotiation and quotation-based projects awarded by the agency

Magistrate Anis Hanini Abdullah granted the remand orders at the Ipoh Magistrate’s Court yesterday, NST reported.

Three suspects, including two civil servants and a company director, will remain in custody until today. The remaining 10 suspects face a five-day remand expiring on June 20.

The MACC strategic communications division confirmed that the suspects, 10 men and three women aged between their 30s and 60s, were detained on Monday night after arriving at the Perak MACC office to provide statements. Investigators uncovered an alleged conspiracy that spanned two years, beginning in 2024.

Of those detained, eight are civil servants, while the other five are company owners and members of the public.

“Contractors who were detained confirmed that they were required to pay bribes amounting to between 10 and 15 per cent to intermediaries, who would then channel the payments to the director and former director of the government agency,” the commission said.

The arrests are the result of Op Drain, a massive coordinated strike launched by the commission’s Investigation Division across Kuala Lumpur, Selangor, Pahang, and Perak.

During the sweep, investigators raided 25 locations, including private residences and government facilities.

MACC seized approximately RM1.5 million in cold cash, a luxury watch, two vehicles, a high-powered motorcycle, and jewellery with an estimated value of RM1 million.

The commission is probing the case under Section 17(a) of the Malaysian Anti-Corruption Commission Act 2009.