Kuala Lumpur: The Malaysian Anti-Corruption Commission (MACC) has thwarted a syndicate involved in corruption and money laundering activities, allowing public servants with bad debts to secure personal loans from local banking institutions.

According to BERNAMA News Agency, Chief Commissioner Tan Sri Azam Baki stated that the MACC Anti-Money Laundering Division collaborated with Bank Negara Malaysia and local financial institutions under ‘Ops Sky,’ resulting in the arrest of 12 individuals yesterday. Initial investigations have uncovered that several officers at banking institutions accepted bribes from financial consultancy firms to facilitate the processing and approval of personal loans for clients.

The investigation revealed that bank officers identified clients, primarily public servants with bad debts, and introduced them to financial consultancy firms offering multiple-loan schemes. Azam Baki mentioned that the firms provided documents with false information to secure loans from several financial institutions.

The financial consultancy firms were also found to have advanced money to borrowers to settle old debts. The borrowers were required to repay the advance once the loans were approved, with the remaining loan amount invested in an investment scheme.

MACC has frozen 70 company and individual accounts with a total value exceeding RM16.2 million and seized nine vehicles, over RM300,000 in cash, 17 luxury watches valued at RM11.1 million, and five branded handbags worth over RM430,000.

Azam Baki further disclosed that 10 male and two female suspects, aged between 20 and 30, have been placed under a five-day remand following MACC’s application to the Putrajaya Magistrate’s Court. The case is being investigated under Section 16 of the MACC Act 2009.