MACC turns spotlight on civil servants in RM120mil milk cartel scandal
A Malaysian Anti-Corruption Commission (MACC) source told the New Straits Times that investigators were zeroing in on individuals within the department that received the milk powder.
"We are intensifying the probe and looking at this new angle," the source said, adding that more persons of interest could be identified as the case progresses.
"Investigations are ongoing, and individuals are being identified based on the statements obtained."
So far, investigators have seized a substantial number of key documents, including tender papers, government contracts, and financial records.
They believe the documents will shed light on the inner workings of the supply chain and uncover irregularities in the procurement process.
"The MACC is focusing on the department that received the milk powder," the source added.
It was reported that on July 8, anti-corruption officers swooped in on the cartel, believed to be masterminded by a family, supplying milk powder to a government department. The product failed to meet Sirim's safety and quality standards.
The cartel, led by a married couple and their son, had secured contracts worth RM120 million.
It is believed they had been supplying milk powder since 2019 – possibly earlier.
The following day, investigators raided a milk processing factory and two companies.
The crackdown, dubbed 'Op White', was an inter-agency operation involving the MACC, the Inland Revenue Board, and Bank Negara Malaysia.
Raids were carried out at three residences and a company premises in Kuala Lumpur.
These locations are believed to contain documents related to supply contracts dating back to 2019, but the couple's company is believed to have monopolised milk powder supply tenders for government departments for over two decades.
Sources said three family members, believed to be the masterminds behind the monopolisation of milk supply tenders, had their statements recorded by MACC officers over the past two days.
"In addition to the trio, shareholders and suppliers involved in delivering milk powder to government hospitals and prisons were also called in for questioning," a source said.
Investigators believe the company supplied substandard milk powder between 2021 and 2024. From this year through to 2027, the company holds contracts to supply milk powder in the southern and east coast zones.
Investigations revealed that most of the companies awarded government tenders to supply milk powder had no prior experience in the production, processing, or distribution of food and beverages.
So far, 75 bank accounts – comprising 24 personal and 51 company accounts – with a total value of approximately RM174 million have been frozen.
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