SIXTEEN company directors were arrested in a large-scale operation yesterday over alleged misappropriation of funds from the Indian Community Transformation Unit (Mitra), the Malaysian Anti-Corruption Commission (MACC) said.

Sources told The Malaysian Insight that all suspects – aged 24 to 68 – were detained in the Klang Valley for allegedly embezzling tens of millions of ringgit from the fund.

A source said one of the directors was believed to have applied for an allocation from an agency under the National Unity Ministry where he later shared the funds with other individuals.

The Mitra fund was created by then prime minister Najib Razak to provide socio-economic programmes for the Indian community.

However, investigations by MACC have found no programme carried out or statement of expenditure submitted by those who had received grants from it.

“The probe will cover all forms of applications and grant allocation expenses that have been channelled by Mitra from 2018 to date.

“We estimate that almost 60% of the grant allocation received by companies, individuals and foundations for the purpose of implementing socio-economic development programmes did not reach the target group,” he said.

Another source said all 16 suspects were brought to the Putrajaya magistrates’ court this morning to be remanded.

MACC chief commissioner Azam Baki confirmed the arrests.

He said investigations are being carried out under Sections 16(a) and 18 of the MACC Act 2009.

Mitra was restructured in 2018 during the Pakatan Harapan administration and was placed under the Prime Minister’s Department.

However, from April last year, Mitra, which is said to have an allocation of RM100 million a year, was placed under the National Unity Ministry. – October 26, 2021.