Royal MAlaysia Navy Corruption Scandal -

Remand extended for navy personnel in alleged graft

16 march 2015

The remand order for six Royal Malaysian Navy (RMN) personnel and a group of civilians suspected of corrupt practices in naval procurement has been extended.

​Magistrate's court assistant legal officer Wong Lok Hai ordered for 11 of the 15 remanded since last Monday to have their remand extended for three more days, while four civilians were released.

The remand for the 11 was supposed to have ended Monday.

Last week, six RMN staff, including a female officer, in their 30s and 50s, were arrested following a tip-off that they were involved in corrupt practices at the navy's dock procurement section.

They had splurged lavishly on expensive cars, watches, and purchased several properties.

This caused Malaysian Anti-Corruption Commission investigators to question their sudden ability to spend on luxury items way above their pay grade.

Nine civilians aged 20 to 60, who were working for companies supplying items to the navy, were also detained the same day.

It is also learnt that the suspects may have been involved in this "lucrative" operation for more than five years.

Published: Friday March 13, 2015 MYT 6:05:00 PM
Updated: Friday March 13, 2015 MYT 6:37:07 PM

Nur Jazlan: Armed Forces purchases must undergo audit

KUALA LUMPUR: A thorough audit of procurement procedures of the Armed Forces is needed to avoid abuse of power, leakage, misappropriation of funds and corruption, said Public Accounts Committee (PAC) chairman Datuk Nur Jazlan Mohamed.

He said this followed the arrest of several navy personnel by the Malaysian Anti-Corruption Commission (MACC) in a special operation recently.

"The National Audit Department needs to carry out an audit on the procurement procedures of ATM's three wings (Army, Navy, Airforce) to ensure and maintain the respectable image of the security forces.

"The arrest of several navy personnel by the MACC for alleged involvement in corruption was indeed shocking, especially when it was reported to have been occurring over the past few years," he said in a statement here.

Nur Jazlan said MACC's operation proved that there were weaknesses in the Armed Forces procurement procedures and a thorough audit was critical.

Nur Jazlan said several years ago, PAC had called the Navy to explain the acquisition of the Eurocopter helicopters but many information were not disclosed on grounds that it involved secret and sensitive matters concerning national security.

"Armed Forces needs to be more transparent in the procurement as it uses the people's money and that it should not use the excuse of not being able to disclose the procedures on grounds that it was a secret and sensitive to national security, while there were elements of misappropriation and corruption among its personnel," he said.

Nur Jazlan said he would write a letter to Auditor-General Tan Sri Ambrin Buang soon on the matter. - Bernama

Another navy man held

Posted on 12 March 2015 - 06:34pm
Last updated on 12 March 2015 - 07:20pm

P. Chandra Sagaran

IPOH: A Royal Malaysian Navy personnel was arrested for alleged corrupt practices by Malaysian Anti-Corruption Commission officers (MACC) bringing the number of naval officers detained by the commission to six.

The 39-year-old personnel with the rank of lieutenant commander was brought to the magistrate's court here today to be remanded until March 16.

Magistrate Suhaima Mohd Noor issued the order.

The suspect was accompanied by his lawyer Norhasham Hasan.

The officer's wife with the same rank was also remanded together with four other personnel at the magistrate's court here on Tuesday.

Also remanded on the same day were nine civilians, including a woman.

The officers between the ages of 30 and 50 from the RMN base in Lumut are being investigated under Section 17 (a) of the MACC Act 2009 and the civilians under Section 17 (a) of the MACC Act 2009.

The officers are being investigated for soliciting and/or receiving gratification while the civilians are being investigated for offering and/or giving gratification.

An MACC spokesman said more personnel are expected to be remanded to conduct investigations into procurement of projects.

MACC obtains remand against 14 people including four navy personnel

Posted on 10 March 2015 - 05:20pm
Last updated on 10 March 2015 - 06:02pm

P. Chandra Sagaran
newsdesk@thesundaily.com

IPOH: The Malaysian Anti Corruption Commission (MACC) obtained a seven day remand order against 14 people including four Royal Malaysian Navy personnel to facilitate investigations into alleged corruption offences.

The navy personnel as civil servants are being investigated under Section 17 (a) of the MACC Act 2009 while the others are being probed under Section 17 (b) of the same act.

Based on the Section, the investigation is centred on any person or agent for soliciting or receiving any form of gratification or bribe as inducement.

They were brought to the magistrates court for remand proceedings in a MACC bus and escorted into court by the commission's officers.

All of them covered their faces from press photographers as they alighted from the bus.

One of the four navy personnel is a woman, while the remaining 10 are civilians.

The remand order was issued by Magistrate Rahimah Rahim.

MACC nets 5 Super rich’ Navy officers

BY JASPAL SINGH

IPOH, March 11 — They were middle-rank Royal Malaysian Navy (RMN) personnel but the lifestyles they were leading seemed to be that of those with high-paying jobs.

The officers were not afraid of spending money on anything they wanted and did not flinch at the thought of being discovered with huge sums of cash, sources said.

The sources said it was this uncontrolled lust for self-gratification that finally led to their undoing.

On Monday evening, five RMN staff, including a female officer, were arrested by the Malaysian Anti-Corruption Commission (MACC) in and around the naval base in Lumut.

They are being investigated for alleged corrupt practices involving naval procurement.

Nine civilians including a woman were also held the same evening. They were officials of companies supplying items to the navy.

The suspects, in their 20s to 50s, were picked up following intelligence reports they were involved in fixing procurement details.

The five navy staff, stationed at the naval dock in Lumut are believed to be staff from the procurement section.

Malay Mail learnt the five had been leading an opulent life and their illegal transactions amounted to millions.

A source familiar with the case said: “There are thousands of transactions handled by the navy’s dock procurement section everyday and the transactions are huge.

“The suspects were operating like a syndicate. The five navy suspects were earning their cuts by working with the civilian suspects.”

It is learnt the kickbacks received by the navy suspects were in the form of cash and account transfers.

“They were living a lavish lifestyle, spending heavily on personal items and assets,” said the source.

He said the MACC had obtained a remand order for the suspects as the commission feared documents on dealings and transactions would either be destroyed or hidden by the suspects or their accomplices.

The MACC, he said, needed to act fast to obtain statements from them.

Malay Mail understands the syndicate operated on “several levels” and investigators were probing if other officers, including high-ranking personnel, also had a hand in these dealings.

A seven-day remand order for the 14 was obtained from the Ipoh magistrate’s court yesterday and they will be remanded until next Monday.

A senior MACC officer confirmed the arrest, saying more are expected to be nabbed soon.

“The investigation into the navy procurement irregularities involves millions of ringgit,” he said.

“We will issue a statement on the case in the next few days.”

Malay Mail learnt that the male suspects are being detained for questioning at various police lock-ups around the city while the two women suspects will be remanded at the Perak MACC lock-up.

The navy personnel will be investigated under Section 17(a) of the MACC Act 2009 for accepting bribe while the civilians will be investigated under Section 17(b) of the same Act for giving bribe.

The swoop against the navy personnel comes in the wake of the crackdown by MACC late last year against the officers from the  Royal Malaysian Customs last year over liquor and cigarette smuggling that cost the government billions in lost taxes.

The MACC had also recently picked up 26 officers near the Malaysia-Thailand border for alleged links with petrol and diesel smugglers in Durian Burung, Kedah.

Last week, anti-graft busters also arrested the chief executive officer of a Felda subsidiary over the purchase of a RM40 million hotel in Port Dickson, Negri Sembilan.

A businessman, in his 40s, who acted as the middleman was also arrested last week.

- See more at: http://www.mmail.com.my/malaysia/article/macc-net-5-super-rich-navy-officers#sthash.C5fQFDqP.dpuf

Navy staff suspected of corruption wielded influence, sources say

The Malay Mail Online – Fri, Mar 13, 2015

IPOH, March 13 — The Royal Malaysian Navy (RMN) staff suspected of engaging in corruption may have used their internal influence to facilitate their illegal activities in Lumut.

This was revealed with the remand of a sixth navy staff — a 39-year-old man with the rank of lieutenant commander — yesterday to aid investigations. He is the husband of one of the five navy suspects remanded before this.

The five-day remand order was handed down by magistrate Suhaima Mohd Noor.

Sources told Malay Mail the staff members were believed to have abused their positions to fill their coffers with navy funds.

“Their method was simple. They used their internal influence to make false procurement claims,” noted a source.

“We believe this involves marking up the prices of items procured by the department. Sometimes, they would even pretend to buy things which were not ordered.

“When the claim was approved, they would get part of the commission. Whatever they got would then be divided among themselves.”

The source said such a method was common in corruption cases.

He said the operation was believed to have been facilitated by more than one middleman, including some of the nine civilians nabbed.

On Wednesday, Malay Mail front-paged a report on the remand of five RMN staff members and nine civilians suspected of being involved in corrupt practices.

The RMN staff were arrested in and around the Lumut naval base. The civilians, including a woman, works for companies supplying items to the navy. All 14 were detained on Monday.

With sources estimating the corrupt activities had been going on for five to 10 years, the transactions could amount to millions.

Sources said the officer remanded yesterday was not in the same procurement department as his wife — also a lieutenant commander — but was stationed at the naval base.

“It is believed this man was part of the syndicate carrying out the corrupt practices, and the six people involved knew each other well,” said the source.

“Their extravagant purchases and lifestyle created suspicion and led to them being detained by the Malaysian Anti-Corruption Commission.”

Malay Mail published a report yesterday on the extent of the lavish lifestyle allegedly enjoyed by the staff, which included buying luxury cars, expensive watches and multiple pieces of property.