The MACC has arrested a third suspect for suspected fraud involving the solar hybrid project for rural schools in Sarawak.

According to sources, the 39-year-old company director was arrested at the MACC headquarters in Putrajaya about 7.45pm where he had earlier arrived to have his statement recorded.

"The suspect is the third suspect nabbed by MACC to facilitate investigations into the project to supply and install solar panels for 369 schools in Sarawak involving a cost of RM1.69 billion," said the source.

He is expected to be taken to the Putrajaya Magistrate's Court tomorrow for a remand order.

Yesterday, MACC remanded two suspects - a 59-year-old company director and a 30-year-old lawyer - for six days over the case.

The project was meant to supply electricity to 369 rural schools in Sarawak by supplying diesel, setting up solar hybrid systems and maintaining generators.

The company, Jepak Holdings Sdn Bhd, was awarded the contract for the project in January last year.

Malaysiakini had reported that then prime minister Najib Abdul Razak had supposedly instructed for the project’s contract to be awarded to a politically-linked company, hence bypassing the Education Ministry’s procurement process.

Payment was allegedly made although no work was done.

In response to the allegations, Jepak conceded that it was awarded the contract through direct negotiation but denied any wrongdoing.

Among others, the firm's managing director Saidi Abang Shamsuddin said the actual cost of the project was only RM750 million and it had yet to receive any payment.