Malaysia anti-graft probe seizes over US$10.8M in cash, luxury items linked to army procurement corruption

KUALA LUMPUR, MALAYSIA: Malaysia’s anti-corruption authorities have seized and frozen nearly RM44 million (approx. (US$10.8 million)) in assets as part of an investigation into alleged corruption and abuse of power linked to military procurement tenders.

The Malaysian Anti-Corruption Commission (MACC) said the probe centres on suspected irregularities involving army contracts and a former Malaysian Army chief, with multiple arrests and asset seizures already made.

At a press conference on 15 January 2025, MACC Chief Commissioner Tan Sri Azam Baki said physical items worth RM11.4 million had been seized from several locations, including residences in Kuala Lumpur and Besut, Terengganu.

According to Azam, the seized assets include RM4.4 million in cash and foreign currency valued at RM1.4 million, alongside a Range Rover estimated to be worth RM360,000.

Investigators also recovered 26 luxury wristwatches valued at RM2.3 million, the majority of which were Rolex timepieces, as well as jewellery and precious metals.

“We seized jewellery worth RM294,039, two diamond rings valued at RM20,000, gold bars weighing 3.7kg worth more than RM700,000 at current prices, and more than 1kg of gold valued at RM2.5 million,” Azam said.

He added that gold medals weighing 150g, valued at RM102,000, and two gold dinars weighing 8.5g, valued at RM5,780, were also among the items recovered.

Azam said the physical seizures totalled RM11.4 million, while a further RM32.5 million had been frozen across 75 company accounts linked to the investigation.

“The majority of the seized watches are Rolex, and we have confirmed their authenticity,” Azam told reporters. “We are presenting these items not to showcase them, but as evidence to ensure that the public receives accurate information.”

In total, MACC has detained 23 individuals so far and opened 22 investigation papers for predicate offences, along with one additional paper related to money laundering.

The investigation is being conducted under Section 17(a) of the Malaysian Anti-Corruption Commission Act 2009 for the receipt of gratification, and Section 23 of the same Act for abuse of power by a public officer.

Authorities are also invoking Section 4(1) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001, Azam said.

According to the MACC, statements have been recorded from 30 witnesses over a period of roughly two weeks, with further inquiries still underway.

The probe was launched following allegations by activist Badrul Hisham Shaharin, also known as Chegubard, who claimed that unusually large cash inflows had been detected in the bank accounts of a senior military officer and family members.

Chegubard alleged that a forensic audit of anonymously obtained documents showed monthly deposits ranging from RM50,000 to RM60,000, prompting calls for an official investigation.

On 7 January 2025, former army chief General Tan Sri Muhammad Hafizuddeain Jantan and his two wives were among five individuals arrested by the MACC in connection with alleged irregularities in army procurement tenders.

Azam reiterated that the investigation remains ongoing and that all seized assets will be treated as key evidence in the case.

“We are not just looking at the money transactions. We need to trace who provided the money, who received it, and the purpose behind it,” he said, describing the probe as complex and wide-ranging.

In addition to the main case, MACC is investigating the possibility of a broader corruption network within the armed forces, involving a second related investigation.

That parallel case has resulted in additional seizures of RM1.3 million in cash, RM721,000 in foreign currency, and other luxury goods, with authorities indicating that the investigation is nearing completion.

Azam said further arrests are expected as investigators continue to analyse financial records and procurement documentation linked to military contracts.

Both cases are expected to be referred to the Attorney General’s Chambers by the end of next week for further action, following the submission of a final investigation report to the Deputy Public Prosecutor’s office.