MACC investigates milk powder supplier over alleged tender price manipulation and RM120 million supply monopoly.

KUALA LUMPUR, July 11 — The Malaysian Anti-Corruption Commission (MACC) is currently investigating a milk powder supplier over allegations of tender price manipulation—ranging from 10 to 50 per cent depending on the zone—and monopolisation of supply contracts to a government department.

Sources revealed that the company, reportedly owned by a married couple with their sons as primary shareholders, is believed to have supplied RM120 million worth of products that allegedly failed to meet the standards set by the Standards and Industrial Research Institute of Malaysia (Sirim).

"The investigation is focused on possible tax evasion, corruption, and anti-competitive practices in securing government milk powder supply tenders," the source said.

Authorities are also examining the company’s ownership structure, including a broader network of distributors involved in the milk powder supply chain.

To date, 75 bank accounts—comprising 24 individual and 51 corporate accounts—have been frozen, with a total value of RM174.6 million. Investigators have also seized a range of documents, including supply contracts, financial records, mobile phones, and laptops for further examination.

So far, 10 witnesses have provided statements to MACC, while another son of the couple is expected to appear for questioning next Tuesday or Wednesday.

“There have been no additional arrests for now, but the probe is ongoing, including scrutiny of government department personnel directly involved in the milk powder contract,” the source added.

On Tuesday, three family members allegedly behind the two-decade milk supply tender monopoly were detained under “Op White” in Kuala Lumpur.

MACC chief commissioner Tan Sri Azam Baki confirmed the arrests, stating the family is believed to be at the center of a RM120 million milk powder cartel tied to a government department.

He said the raided premises were suspected of storing documentation related to milk supply contracts dating back to 2019. The investigation focuses on two company owners and a director whose products allegedly did not meet Sirim certification standards.

The case is being investigated under Section 16 of the MACC Act 2009, with additional probes under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLATFPUAA). — Bernama