KUALA LUMPUR – Anti-graft authorities yesterday raided a family-run cartel accused of supplying substandard milk powder to a government department under a RM120 million contract scheme.
The cartel, allegedly led by a married couple and their son, is believed to have monopolised government milk powder supply tenders since at least 2019 and possibly for over two decades, according to media reports.
The joint operation by the Malaysian Anti-Corruption Commission (MACC), Inland Revenue Board (LHDN) and Bank Negara Malaysia saw simultaneous raids on three homes and a company premises in Kuala Lumpur. Investigators seized documents linked to contracts awarded between 2019 and 2027.
MACC chief Tan Sri Azam Baki said the company had been supplying milk powder that failed to meet Sirim safety and quality standards between 2021 and 2024. From this year until 2027, their contracts cover the south and east coast zones.
Three suspects aged between 40 and 70 have been questioned at the MACC headquarters, while a fourth – another son who is also a company director – has been instructed to return from out of town for questioning.
Based on intelligence gathered over three months, it was also reported that authorities froze 75 bank accounts, including 24 individual and 51 corporate accounts, holding a total of RM156 million in assets.
The investigation is being conducted under Section 16 of the MACC Act 2009 for corrupt practices, with parallel probes under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 and the Income Tax Act 1967. – July 9, 2025