Anti-graft probe: State firm raided in Selangor

Officers seizing documents during the raid at Universiti Selangor. The probe centres on payments made by Menteri Besar Selangor Incorporated to a private contractor for maintenance work on the campus.
Officers seizing documents during the raid at Universiti Selangor. The probe centres on payments made by Menteri Besar Selangor Incorporated to a private contractor for maintenance work on the campus.PHOTO: THE CHINA PRESS

SHAH ALAM • The Malaysian Anti- Corruption Commission (MACC) has carried out raids in Selangor and Kuala Lumpur in its probe of RM16 million (S$5.1 million) allegedly paid by a Selangor state- owned company to a private firm.

On Tuesday, MACC officers carted away documents from the offices of state investment firm Menteri Besar Selangor Incorporated (MBI), private contractor Jana Niaga and Universiti Selangor (Unisel).

The probe centres on payments made by MBI to Jana Niaga for maintenance work of student accommodation at Unisel's main campus in Bestari Jaya.

Sources said MBI had allegedly paid Jana Niaga RM10 million in 2015 and RM6 million last year.

The MACC probe is believed to focus on why the payments were made although Jana Niaga had failed to fulfil the contractual requirements for work done in Unisel in 2012.

MACC director of investigations Simi Abd Ghani said: "We're still in the early stage of our investigations and we will gather strong and sufficient evidence before we proceed."

The payments in question were made pursuant to an out-of-court settlement of a dispute between Jana Niaga and Unisel.

"The settlement finalised between Unisel and Jana Niaga was based on proper administration and completely does not involve the Selangor Menteri Besar either personally or in his capacity as the arbiter of the dispute resolution," said a statement issued by the Menteri Besar's office on Tuesday.

The investigations stemmed from a police report lodged by the youth wing of ruling party Umno claiming Menteri Besar Azmin Ali was responsible for the payments. Opposition party Parti Keadilan Rakyat has led the Selangor state government since 2008. Mr Azmin's office has said the raids were "an attempt to smear the image of the state government".

THE STAR/ASIA NEWS NETWORK

A version of this article appeared in the print edition of The Straits Times on August 24, 2017, with the headline 'Anti-graft probe: State firm raided in Selangor'. Print Edition | Subscribe