A rice supply company based in Kedah is facing allegations of fraudulent rice supply practices, which have caused disruptions in the distribution and sales of rice, a vital staple in the country.

The Malaysian Anti-Corruption Commission (MACC) uncovered these activities when it came to light that the company had secured a lucrative rice supply contract from a government-owned agricultural firm approximately seven years ago. This contract, valued at over RM100 million annually, was for rice supply across the Malaysian Peninsula.

According to sources, the company secured financing for the project by obtaining a bank loan of approximately RM30 million several years ago.

The company's director is suspected of colluding with a board member of the state government-owned company to confirm the purchase and delivery of around 28,000 metric tons of rice annually, with an estimated value exceeding RM100 million. However, the agreed-upon rice supply was never fulfilled.

It is alleged that the company has already received approximately RM30 million through multiple transactions related to this fraudulent scheme.

Additionally, there are suspicions that the suspect submitted documents containing false information to the bank during the loan application process.

In response to these allegations, Senior Director of Investigations at the Malaysian Anti-Corruption Commission (MACC), Datuk Seri Hishamuddin Hashim, confirmed that an investigation is underway under Section 18 of the MACC Act 2009.

Source: Harian Metro