KUALA LUMPUR — The syndicate that preyed on civil servants with bad debts managed to secure nearly RM700 million in bank loans from various financial institutions since the Covid-19 pandemic, according to a report.
Berita Harian, citing a Malaysian Anti-Corruption Commission (MACC) source, also reported that some 4,000 civil servants were deceived by syndicate members who posed as financial consultants.
These “consultants” allegedly entered government ministries and departments nationwide to offer financial assistance to civil servants with bad debts.
They then colluded with bank officers to get personal loan applications approved.
The RM700 million in loans approved was over the last five years after the syndicate began operations during the Covid-19 pandemic.
According to the source, the syndicate would profit from service fees and debt settlement fees.
Earlier this week, MACC said it arrested 12 individuals in “Ops Sky”, a joint operation with Bank Negara Malaysia to uncover a syndicate comprising bank officers and external financial consultants who colluded to obtain personal loans.
Those remanded, who were 10 men and two women between the ages of 20 and 40, included a manager and a former sales manager of a banking institution, two directors of a financial consulting company, and a foundation director.
MACC and Bank Negara Malaysia found that the “financial consultants” would target civil servants with bad debts, prepare documents with false information, and submit these to several banks to obtain personal loans. The bank officers involved would help to secure the loan approvals.
The financial consultants would then “advance money” to the borrower or victim to pay off their debt, telling them to repay the advance after the bank loan is approved, and to place remaining funds after the “advance” is repaid in an investment scheme.
Another 16 individuals are being traced by MACC, its Chief Commissioner, Tan Sri Azam Baki, was reported saying in New Straits Times today.
financial sector to be investigated under Ops Sky.
MACC has also seized more than 4,000 documents in the investigation so far.
Azam also said bank officers in the syndicate received RM5,000 for each loan they approved, and bribes amounting to between 0.5% and 1% of the loan value.
Along with the earlier arrest of 12 people, MACC also froze 70 company and individual accounts worth RM16.2 million. Nine luxury vehicles were also seized include marques such as Ferrari F8 Spider, Lexus RC300, Mercedes-Benz GLC43, BMW, Toyota Alphard, Mazda and Honda.
Cash of over RM300,000, over RM54,000 in Hong Kong currency, RM1.1 million worth of luxury watches and RM430,000 worth of designer handbags as well as RM50,000 worth of jewellery were also seized, besides laptops and tablets. – January 18, 2025
