MACC: Three arrested in Kedah over alleged RM20m financing bid for paddy and rice purchases that never happened

KUALA LUMPUR, July 7 — Three people, including two company directors, have been arrested by the Malaysian Anti-Corruption Commission (MACC) in Kedah over allegations they used false documents in an attempt to obtain about RM20 million in financing for paddy and rice purchases that investigators say never took place.

In a statement today, the anti-graft agency said the suspects, who are involved in the rice and paddy production and processing business, are suspected of submitting documents containing false particulars to a development financial institution under the Trade Working Capital Financing-I facility.

The financing, worth about RM20 million, was intended for the purchase of paddy and rice.

According to the MACC statement, one of the suspects, a man in his 30s who works as an operations manager, has been remanded for five days until July 11 after an order was granted by Magistrate Eliana Ismail at the Alor Setar Civil Court this morning.

The suspect was arrested at about 6pm yesterday when he turned up to give his statement at the MACC office in Alor Setar.

Preliminary investigations indicate that the three suspects, who are members of the same family, allegedly conspired to commit the offence in 2025.

“The other two male suspects, who are company directors in their 60s, have been released on MACC bail,” the statement said.

The commission alleged that although the suspects submitted the documents to the development financial institution, no actual transaction for the purchase of paddy and rice took place.

MACC Senior Director of Investigations Datuk Mohd Hafaz Nazar confirmed the arrests when contacted and said the case is being investigated under Section 18 of the MACC Act 2009.