KUALA LUMPUR — June 6, 2017: Four officials of the Telekom Malaysia cooperative were arrested today on suspicion of corruption and abuse of power.
They are believed to have been involved in two cases which caused members to be cheated and losing money.
According to the Malaysian Anti-Corruption Commission (MACC), they are also believed to have conspired with a supplier by buying daily necessities in bulk and selling them back to the supplier.
When members wanted to buy the goods, they would have to take up a loan with the cooperative before the supplier would deliver the items. The supplier would then issue an invoice seeking payment from the cooperative.
The supplier would sell the items at a high price to the co-op and they would then divide the profits with the officials, said the agency’s statement.
Four of those arrested are the chairman, secretary, treasurer and a board member, all awarded the honorific datuk. A supplier and the wife of a board member were also detained.
The MACC believes that apart from this, the board members could have abused their power by signing up borrowers to a direct selling and multi-level marketing (MLM) company.
Those detained are believed to have deceived more than 450 members, with profits amounting to more than hundred thousands of ringgit.
The members were mostly unaware that by taking up a loan with the cooperative, they also signed up with the MLM company.