KUALA LUMPUR (April 9): A former chief executive officer of a government-linked investment company was among two individuals arrested by the Malaysian Anti Corruption Commission (MACC) over a share sale transaction that may involve a company in downstream oil and gas (O&G) operations, sources told The Edge.

Also arrested was the director of a holding company, linked to the family member of a former minister, which previously held shares in the O&G outfit.

The two men were arrested for having allegedly conspired to sell shares at inflated prices to companies linked to the GLIC, according to sources.

The deal reportedly resulted in over RM300 million in estimated losses of public funds.

Sources said the two men were detained by the MACC at about 6pm on Wednesday when they turned up to give their statements at the MACC headquarters in Putrajaya.

Bernama, in a separate report, said that initial investigations found that both suspects are believed to have colluded in committing the act between 2022 and 2023..

Preliminary investigations also found that the share sale transaction "is believed to have involved overvaluation that was disproportionate", Bernama further reported. 

Investigations are being carried out by the MACC's special operations division, with raids carried out at 13 key locations involving agencies and public interest companies, office premises and residences of identified individuals around the Klang Valley, according to the report by Bernama.

In addition to the arrests, a total of 62 personal and company bank accounts linked to the case have been frozen, involving approximately RM450 million, the report read.

The two individuals are being remanded for four days until Sunday, after Magistrate Azeren Zakariah allowed the application by the MACC at the Putrajaya Magistrate’s Court on Thursday, according to the report. 

Bernama quoted MACC special operations division senior director Datuk Mohamad Zamri Zainul Abidin as saying the case is being investigated under Section 16 of the MACC Act 2009.

“The case is also being investigated for criminal breach of trust and other related offences, particularly those involving money laundering,” he reportedly said.