Khairy Jamaluddin has mooted an independent investigative panel to identify weaknesses as well as upgrade the process and financial procedure in his ministry.

The youth and sports minister said he has discussed the matter with the chief secretary to the government Ali Hamsa.

"An immediate examination will be carried out on all internal mechanisms and administrative processes linked to the channelling of funds in the ministry.

"The main objective of the panel is to repair the weaknesses in the internal process which can lead to the embezzlement of public funds," he told a press conference in Putrajaya.

Earlier, Khairy confirmed that a senior government official arrested in connection with a RM100 million corruption probe is from his ministry.

The minister said the Malaysian Anti-Corruption Commission (MACC) informed him of the investigation several weeks ago.

Previously, MACC revealed that a division secretary with a government agency, whom it described as the mastermind, was among nine arrested on March 17.

They are believed to be part of a syndicate involving misappropriation of state funds.

The 56-year-old senior officer was alleged to have received kickbacks amounting to RM20 million and led a lavish lifestyle.

The syndicate, which had been operating since 2010, allegedly hosted non-existing programmes with payments made to a contractor through the division secretary.

MACC froze 69 accounts worth RM8.33 million, and seized houses, cars, clothes, jewellery.

Also confiscated were expensive watches worth up to RM400,000, Hermes handbags worth RM600,000 and RM300,00 worth of beddings.

The mastermind also frequently travelled with his family via first class tickets costing RM80,000 per person.

Meanwhile, Khairy said the independent panel would not comprise ministry officials.

“I stress that the investigative panel to be formed must come from the KSN (chief secretary), trained officers, and no officials from the ministry.

“I will leave it to this panel to conduct a thorough investigation,” he added.