KUALA LUMPUR, Feb 9 — What started as an investigation into unusual loan approvals has now unravelled into a full-blown corruption and money laundering scandal.
Dubbed Op Sky, the Malaysian Anti-Corruption Commission’s (MACC) latest crackdown has led to multiple arrests, frozen bank accounts worth millions, and exposed the alleged involvement of local celebrities.
As the case continues to unfold, here’s a primer on what we know so far:
What is Op Sky?
On January 14, the MACC revealed that it had arrested 12 people after dismantling a syndicate that enabled civil servants blacklisted by financial institutions to still obtain personal loans from local banks.
MACC Chief Commissioner Tan Sri Azam Baki said that initial investigations indicated that officials from several banks received kickbacks or payments from a financial consulting firm in return for helping to process and approve personal loans for disqualified clients.
The syndicate was uncovered by MACC’s anti-money laundering division in collaboration with Bank Negara Malaysia and local financial institutions.
The case was being investigated under Section 16 of the MACC Act 2009, which covers the solicitation and acceptance of bribes that is punishable by up to 20 years in prison and a fine of at least five times the amount of the gratification received or RM10,000, whichever is higher, upon conviction.
MACC Chief Commissioner Tan Sri Azam Baki speaks to reporters after a roundtable programme in Kuala Lumpur on Oct 17, 2024. — Bernama pic
How did the syndicate operate?
The bank officials would identify the “clients” — civil servants with bad debts — and refer these to a financial consulting firm that offered assistance with a “multiple loan” scheme.
The consulting firm was believed to have provided forged and falsified documents to several financial institutions that were used to secure loans. The firm was also found to have advanced money to the borrowers to settle their old debts.
The firm would receive payment amounting to 1 per cent of the approved loan value.
Once the loan is approved, the borrower would repay the advance (from the financial consulting firm) and the remaining loan amount would be deposited in an investment scheme.
Azam explained that the company was also exploiting the turnaround time during the loan approval process by banks, which takes four to five days.
“During this period, the syndicate fabricates fraudulent cancellation letters, purportedly issued by the initial lending bank, and submits them to other financial institutions processing concurrent applications. This tactic ensures simultaneous approval of multiple loan applications from various banks.
“The syndicate also coaches borrowers to cooperate, ensuring the loan application process proceeds smoothly,” he said.
How did the syndicate spread?
The firm was also found to have offered finders’ fees to its clients to induce them to introduce other clients.
The company would ask individuals who used their financial “services” to post on their personal social media channels to attract their friends to sign up.
The company leveraged several public figures, including artists and celebrities, as official ambassadors to promote their “services”.
They advertised their offerings on Facebook, TikTok, and Instagram as well as conducted surveys and roadshows at schools, hospitals, and clinics targeting schoolteachers and other public sector employees.
“The company also actively promoted their services through organisations such as foundations, by organising CSR (corporate social responsibility) and welfare programmes for government agencies and civil servants,” Azam said.
Media reports indicate that RM700 million in bank loans had been approved for borrowers who were later deceived by the syndicate, which took at least 35 per cent of the loan amount under the pretext of offering financial assistance.
A file photograph shows a person wearing the Malaysian Anti-Corruption Commission’s uniform for detainees. — Picture by Hari Anggara
What has been done?
The MACC has seized over 4,000 documents in its investigation and frozen 98 company and individual accounts containing over RM22 million as part of its investigation into the syndicate.
It has also confiscated nine vehicles of various brands, more than RM300,000 in cash, 17 luxury watches estimated to be worth RM11.1 million, and five luxury handbags valued at over RM430,000.
To date, a total of 27 individuals have been arrested, including 18 bank officers, eight employees of the financial consultancy firm, and all have been released on MACC bail.
Who are celebrities implicated?
Last week, Azam revealed that based on statements and financial reviews obtained, celebrities involved received payments ranging from RM150,000 to RM400,000 over a period of one to two years as ambassadors of the firm fronting the syndicate.
It also detected payments made for concert sponsorships and the composition of special songs for the syndicate.
Among the celebrities implicated in Op Sky are veteran actor Datuk Jalaluddin Hassan, astronaut Datuk Dr Sheikh Muszaphar Shukor, and singer Ziana Zain.
Actor Datuk Jalaluddin Hassan denied claims that he received payments amounting to RM400,000. — Picture from Facebook/Jalaluddin Hassan
Jalaluddin previously said his role as an ambassador was limited to contractual obligations, which included producing videos and promoting the company.
“When I asked them about their financial standing over the years, everything seemed satisfactory and there was nothing suspicious,” he said.
Jalaluddin also denied claims that he received payments amounting to RM400,000.
Azam said that the celebrities were required to provide statements for the Op Sky investigation, but stressed that this did not mean they were considered suspects.
The three gave their statements on Thursday at the MACC headquarters in Putrajaya, which lasted about five hours.
Following that, the MACC said it is in the final stages of its Ops Sky investigation as it has now obtained all necessary information from the individuals involved.
