A restaurateur who allegedly staged his own kidnapping to use the ransom money to settle financial woes has been arrested by the police.

The 26-year-old suspect was leaving a bank in Kajang after withdrawing RM25,000 in 'ransom money' last Thursday, when a police team which had been keeping surveillance on his movements nabbed him.

Wangsa Maju police chief Supt Mohd Roy Suhaimi Sarif said the money - a negotiated amount from the original RM60,000 'ransom' demanded - was deposited into the suspect's bank account by a cousin to secure his 'release'.

He said the police smelled a rat in the story of the 'kidnapping' after a report was lodged by the 33-year-old cousin, who works as a manager at a private company.

"The suspect was arrested after he had withdrawn the RM25,000 from the bank," he told reporters in Kuala Lumpur today.

Mohd Roy said on Thursday, the suspect contacted the company manager about 2.30pm, claiming he was kidnapped by four men who demanded a RM60,000 ransom to secure his release.

"The suspect also told the cousin that the so-called kidnappers had threatened to kill him if he did not come up with their ransom demand which was eventually negotiated to RM25,000.

"Initial investigations revealed the suspect who owned a restaurant was having financial problem," he added.

The restaurateur, who does not have any criminal record, was remanded until Monday to facilitate investigations into the staged kidnapping.

- Bernama