The MACC has launched investigations into an alleged cartel involved in the distribution and supply of paddy fertiliser as part of an RM1.8 billion government project.

Over the last two days, a source claimed the MACC had visited several premises around Kuala Lumpur for the investigation.

These are the headquarters of an organisation tasked with producing the fertiliser and distributing it to paddy farmers, as well as a ministry and nine companies involved in the project.

It had seized documents linked to the project and called up six people from the ministry and the organisation for questioning.

According to the source, the project under the ministry is worth RM1.8 billion and runs for 30 months from 2021 to 2023.

“Investigations found that the organisation (which is an entity under a ministry) used two methods to fulfil government contracts, which is to buy paddy fertiliser directly from five producers or buy raw materials from four companies to be processed into fertiliser.

“The MACC investigation will look into corruption in procuring fertiliser or raw materials from selected companies.

“In addition, the investigation also probes potential abuse of power where board members involved in selecting the companies have vested interests,” the source said.

When contacted, MACC chief commissioner Azam Baki confirmed the investigation and would not rule out arresting several suspects to facilitate investigations.

The case is being investigated under Sections 16 (the offence of accepting bribes), 18 (the offence of using an agent to deceive), and 23 (abuse of power for gratification) of the MACC Act 2009.