RM700 Million Loan Scandal: MACC Uncovers Financial Firm Syndicate, Bank Officials Accused of Collusion!

KUALA LUMPUR: Financial consultancy firms managing loans for victims, including civil servants, have been found to take at least 35 percent of the approved bank loan amounts.

Investigations by the Malaysian Anti-Corruption Commission (MACC) revealed that victims did not receive the full loan amounts granted by the banks.

“Investigations found that the syndicate secured loans from various banks amounting to approximately RM700 million, supposedly to assist victims, including civil servants.

“They orchestrated ‘multiple loans’ from various financial institutions simultaneously and colluded with bank officials to manipulate the system.

“Borrowers were burdened with massive debts, and although the syndicate has been dismantled, they remain indebted to the banks and are required to continue repaying the loans,” said MACC Chief Commissioner Tan Sri Azam Baki.

He stated that investigations under Op Sky will continue as the case involves numerous victims and extensive documentation.

“MACC will summon many witnesses to cooperate in this case,” he added.

Earlier, it was reported that almost all the thousands of victims, including civil servants, ensnared by the financial consultancy syndicate dismantled in Op Sky recently, are unlikely to repay their loans.

MACC’s investigations revealed that victims are now overwhelmed with debts far exceeding their repayment capacities.

Some victims reportedly have debts up to three times their financial capabilities, making repayment in the near future nearly impossible.

Over the past two weeks, MACC successfully dismantled a corruption and money laundering operation involving financial consultancy firms and bank officials from several financial institutions.

This success was achieved through the arrest of 12 individuals in raids conducted by the MACC’s Anti-Money Laundering Division in collaboration with Bank Negara Malaysia at 24 locations, including residences and offices across the Klang Valley, on a Monday.

Investigations uncovered that nearly RM700 million in bank loans had been approved for borrowers, who were subsequently entrapped by the syndicate offering financial assistance since the onset of the Covid-19 pandemic.

A total of 98 company and individual accounts valued at over RM22 million have been frozen by MACC in connection with the money laundering syndicate masterminded by these financial consultancy firms.