KUALA LUMPUR, The Malaysian Anti-Corruption Commission (MACC) has confirmed that 20 bank officers will be charged in court this week in connection with a massive RM700 million loan syndicate scandal.
The officers, attached to several commercial banks, are alleged to have colluded with syndicate members to approve personal and business loans using falsified documents, including salary slips and bank statements.
According to MACC, the scheme had been operating for several years and involved fraudulent applications that were channelled through insiders within the banking system. Investigators believe the syndicate earned tens of millions in kickbacks by charging borrowers fees for securing loans that would otherwise have been rejected.
“Investigations revealed that the officers abused their positions and conspired with external agents to manipulate banking systems for personal gain,” an MACC source was quoted as saying.
The 20 suspects, who were arrested in a nationwide operation last month, are expected to face multiple charges under the Malaysian Anti-Corruption Commission Act 2009, the Penal Code and the Anti-Money Laundering Act.
The MACC said the case is one of the largest involving financial institutions in recent years and warned that stern action will be taken against both internal and external parties undermining the integrity of the banking sector. “This should serve as a reminder that no one is above the law,” the commission added. The suspects will be brought to court in stages beginning Wednesday.
