The chief executive officer (CEO) of a Federal Land Development Authority (Felda) subsidiary has been arrested and remanded, the Malaysian Anti-Corruption Commission confirmed.

In addition, another businessman has also been arrested but has since been released, said MACC special operations department director Bahri Mohamad Zin.

“Both of them, aged 44, have been arrested to assist investigations because they are suspected of embezzling a Felda subsidiary...

“(This is) in relation to the purchase of a hotel in Port Dickson valued at about RM40 million,” he said in a statement today.

He added that thus far, 23 people have given their statement to MACC over the matter, and investigations are still ongoing.

The investigation is being conducted under Section 16 (a)(A) of the MACC Act 2009, which criminalises the asking and receiving of corrupt gratifications.

Isa Samad's son quizzed

Bahri said the CEO was arrested on March 1 and being remanded until March 10, while the businessman was arrested on Feb 26 and released on March 7.

On Friday last week, Malaysiakini reported that MACC recorded the statement of Felda group chairperson Isa Samad’s son on another hotel deal in London.

 

The London investigation is centred on a RM330 million purchase of the Grand Plaza Kensington, which has since been renamed as the Park City Hotel.

 

The portal quoted sources privy to the investigation but Bahri had declined to confirm or deny whether the commission had questioned Isa’s son.