Malaysia's anti-corruption agency arrests former senior officer over RM42 million paid to several firms

KLANG VALLEY, 30 SEPTEMBER 2026 —

The Malaysian Anti-Corruption Commission (MACC) has arrested a former senior management officer of a state-linked corporation on suspicion of abusing his power to authorize operating expense payments totaling approximately RM42 million to several companies.

The arrest is directly linked to an investigation into substantial losses suffered by UiTM Holdings Sdn Bhd in 2023. According to a source familiar with the matter, preliminary investigations indicate that the suspect allegedly committed the offences in 2017. The source stated that the payments were related to operating expenses and were directed to several companies in which the suspect is believed to have personal interests.

This timeline suggests that the financial irregularities occurred years before the losses were formally identified in 2023, highlighting a potential long-term erosion of corporate assets that went undetected until the recent review of the corporation’s accounts.

MACC Chief Commissioner Abd Halim Aman confirmed the arrest when contacted by reporters. He stated that the case is being investigated under Section 23 of the MACC Act 2009, which deals with the abuse of power by public officers. The legal framework cited indicates that the commission is pursuing charges related to the misuse of authority held by the suspect while serving in a senior management capacity.

The confirmation by the chief commissioner shows the seriousness with which the agency is treating the alleged diversion of funds from a public institution.

A central element of the investigation involves a specific RM42 million payment linked to a 50MW solar project located in Gambang, Pahang. Abd Halim previously disclosed that this specific sum was under scrutiny as part of the broader UiTM Holdings probe. The commission alleged that the money was used for purposes unrelated to the solar project itself.

Furthermore, the payment was made without the approval of the UiTM Holdings board, bypassing standard corporate governance and oversight mechanisms. This lack of board approval is a critical factor in the case, as it suggests a deliberate circumvention of internal controls to facilitate the transfer of funds.

The alleged diversion of funds from a renewable energy initiative to unrelated operating expenses raises significant questions about the integrity of project financing within state-linked enterprises. The 50MW solar project in Gambang, Pahang, was intended to contribute to the nation’s energy infrastructure, yet the funds allocated for it were allegedly repurposed.

The source noted that the payments were made to several companies, implying a network of entities that may have been used to channel the money. The suspect’s alleged interests in these companies suggest a conflict of interest that was exploited to benefit private parties at the expense of the public corporation.

UiTM Holdings Sdn Bhd, a subsidiary of the Universiti Teknologi MARA (UiTM), plays a key role in the commercialization of the university’s intellectual property and technology. The discovery of RM42 million in unapproved payments represents a material loss for the entity and potentially for the broader public sector. The investigation into the 2023 losses has uncovered these earlier irregularities, indicating that the financial mismanagement may have been systemic or persistent over several years.

The focus on the 2017 timeframe suggests that the commission is looking at specific transactions that occurred during a period when the suspect held significant authority over financial decisions.

The suspect is expected to be charged in court on Thursday. This next step in the legal process will formalize the allegations and allow the defense to respond to the charges under Section 23 of the MACC Act 2009. The outcome of the trial will have implications for corporate governance standards within state-linked corporations and may influence future audits of similar entities.

The arrest and subsequent charging process demonstrate the MACC’s continued effort to address corruption in the public sector, particularly in areas involving large-scale infrastructure projects and corporate management.

The case highlights the importance of internal controls and board oversight in preventing the misuse of public funds. The fact that the payments were made without board approval indicates a failure in the checks and balances that are designed to protect corporate assets. As the legal proceedings move forward, the details of the suspect’s role and the specific companies involved in the transactions are likely to become central to the narrative.

The investigation remains focused on establishing the full extent of the abuse of power and the financial impact on UiTM Holdings Sdn Bhd. The upcoming court appearance will be a critical moment in determining the legal consequences for the former senior officer.

Related: UiTM Holdings Sdn Bhd · Malaysian Anti-Corruption Commission (MACC) · Abd Halim Aman · Klang Valley