THE Malaysian Anti-Corruption Commission (MACC) is probing 14 Sabah firms linked to alleged misappropriation of RM48 million in government funds meant for rural development, The Sunday Star reported today.

Citing unnamed sources within the anti-graft agency, the report said that the 14 companies which were awarded numerous development projects in the state are allegedly linked to a senior politician.

“This Datuk pulled together 14 companies that he did not necessarily own, but which he exerted much influence as it belonged to his family and friends,” said an unnamed source quoted by The Star. 

“The RM48 million has been siphoned off may only be the tip of an iceberg of how deep this alleged misappropriation of funds can be,” the source said.

The probe is part of the MACC’s wider investigation into the alleged  embezzlement of RM1.5 billion that had been allocated under the Ministry of Rural and Regional Development for projects within the state. Along with several other ministry officials, former minister Shafie Apdal was arrested earlier this month and detained for eight days to assist investigations.

A complicated business channel was used by those involved in the embezzlement to avoid detection by authorities, The Star said. 

According to the report, prices of development projects had been marked up by 25% and the firms took in 15% of the RM1.5 billion, or RM48 million. The money would then be siphoned off to different businesses and individuals.

Shafie, who was released last Friday, was minister from 2009 to 2015 before leaving Umno to head Warisan, Sabah’s newest opposition party.

The Semporna MP said he would speak about his arrest and reveal all he knew concerning allegations of corruption surrounding Sabah Chief Minister Musa Aman in Parliament.  – October 29, 2017.