The Malaysian Anti-Corruption Commission (MACC) has uncovered an alleged “protection money” network and hidden financial records linked to a well-known massage centre chain.
According to Harian Metro, investigators found that the company allegedly operated a “two-tier” accounting system to conceal its actual earnings. This reportedly allowed substantial cash transactions to go unrecorded, leading to an estimated annual tax leakage of RM7.56 million.
Working together with the Inland Revenue Board (LHDN), MACC focused its investigation on 32 branches that have been reporting since 2023. The probe revealed that bribes were allegedly paid to enforcement officers and local authorities to ensure uninterrupted operations.
As part of the investigation, MACC froze 121 bank accounts holding about RM11.5 million.
Five individuals — including company directors and senior management — were arrested in coordinated operations across Putrajaya and the Klang Valley. The suspects, aged between 30 and 50, were brought before the Putrajaya Magistrate’s Court yesterday, where Magistrate Ezrene Zakariah granted remand orders. Four suspects were remanded for four days, while one was remanded for three days to assist further investigations.
The case is being investigated under Section 16 of the MACC Act 2009 for accepting gratification. So far, 12 witnesses have provided statements to the commission.
MACC has also frozen and is examining luxury assets believed to be linked to the alleged offences. These include five luxury vehicles valued at RM1.5 million, five commercial properties worth RM7.3 million, seven residential units valued at RM7.7 million, and two industrial properties estimated at RM2.3 million. The total value of seized and frozen assets is estimated to exceed RM18.8 million.
Investigators are assessing whether these assets were acquired using proceeds from unlawful activities.
MACC Special Operations Division senior director Datuk Mohamad Zamri Zainul Abidin confirmed that investigations are ongoing, including potential elements of money laundering. The commission said it remains committed to closing enforcement loopholes that enabled such activities and is also probing the extent of the alleged protection money network involving local enforcement personnel.
The massage chain is alleged to have operated all 32 outlets while evading tax scrutiny by bypassing official reporting channels. Authorities are expected to record more statements from stakeholders and employees as the investigation enters its next phase.
The RM11.5 million frozen in bank accounts will remain inaccessible pending the outcome of the probe, while the company’s operations continue to remain under close scrutiny by anti-graft authorities.
