A massive corruption scandal involving the Federal Land Development Authority (Felda) in Bukit Katil, Melaka has recently been unearthed by the Malaysian Anti-Corruption Commission (MACC). The scandal, which emerged in 2023, involved the illegal sale of 260 hectares of Felda land worth RM400 million. MACC arrested eight people suspected of accepting bribes totalling nearly RM2 million to facilitate fraudulent transactions.
Those detained come from various backgrounds, including brokers, citizens, bank officers and company directors, aged between 20 to 50 years and are based in Kuala Lumpur and Sabah.
According to an MACC source, they acted as middlemen and paid almost RM2 million in bribes to two bank employees. These bribes were offered to bank officers to induce them to approve the opening of bank accounts under the name of Felda.
These bank accounts were important to the syndicate’s plot because they were intended to make the sale of the land appear legitimate to unsuspecting buyers. Buyers were led to believe that their payments for land transactions were going to genuine Felda accounts, thereby facilitating the fraudulent sale of land.
The actions of these bank officers contributed significantly to the syndicate’s success in the execution of the RM400 million land fraud. Through their association with the syndicate, bank officials facilitated the fraudulent sale of a significant portion of Felda’s land in Bukit Katil, Melaka.
This sophisticated plot exposed significant vulnerabilities in the banking system and the need for strict measures to prevent such fraud.
In response to the scandal, the MACC took swift action and froze nearly 200 bank accounts of affected individuals and companies. There are assets worth RM28 million in these accounts, reflecting the scale and scope of the syndicate’s operations.
MACC Anti-Money Laundering Division’s director Datuk Mohamad Zamri Zainul Abidin confirmed the arrests and ongoing investigations. He explained that the matter is being investigated under section 16 (a) (A) of the MACC Act of 2009, which relates to the offense of accepting gratification, and the Anti-Money Laundering, Anti-Terrorism Financing, and Proceeds of Unlawful Activities Act 2001 (AMLATFPUAA).
These legal provisions will be key to addressing the complexity of the crimes and ensuring that those responsible are held accountable.
