'Datuk' CEO, CFO remanded for alleged graft in defence contract

The MACC has remanded a private company’s two top executives on allegations of graft in an RM17 million defence contract.

The Putrajaya magistrate Shah Wira Abdul Halim allowed a four-day remand until Thursday to facilitate investigations on the two suspects – a 53-year old "Datuk" who is the company’s CEO, and a 45-year-old chief financial officer.

According to a source, the two suspects supposedly received hundreds of thousands from several companies in relation to the award of a defence contract.

The contract pertains to the supplying of equipment for the Deftech AV8 Gempita and ACV-300 Adnan armoured combat vehicles to a defence agency, between 2014 and 2017.

The source said both suspects were arrested last night at MACC’s headquarters in Putrajaya when they presented themselves for questioning.

MACC deputy chief commissioner (operations) Azam Baki confirmed the arrest when contacted, and said about RM100,000 in cash had been seized as part of the investigation, as well as documents related to the project.

He said the case is being investigated under Section 16 (a)(A) of the MACC Act 2009, which deals with the offence of accepting gratification.

The offence is punishable with up to 20 years’ imprisonment upon conviction, as well as a fine at least five times the value of the gratification.

Azam said several witnesses have also been called up for questioning today, and would not rule out the possibility that more people would be questioned to facilitate investigations.

Meanwhile, DRB-HICOM Bhd today confirmed that the MACC is investigating its subsidiary, Defence Technologies Sdn Bhd (Deftech).

Bernama reported that DRB-HICOM, in a statement today, also said the group and Deftech would provide their utmost cooperation to the authorities in this matter.

Deftech, which is 100 percent owned by DRB-HICOM, manufactures, assembles and supplies military and commercial vehicles, among others.

The Gempita is an eight-wheel armoured vehicle that comes in several variants, and principally serves as an armoured personnel carrier or infantry fighting vehicle in the Malaysian Army. It reportedly entered service in December 2014.

The Adnan, meanwhile, is a tracked vehicle serving similar roles as the Gempita in the army.