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The Malaysian Anti-Corruption Commission (MACC) has uncovered a network of "protection money" and undisclosed financial records linked to a prominent massage centre chain
According to Harian Metro, citing investigators, the chain allegedly used a "two-layer" accounting system to conceal its true profits.
This system reportedly allowed significant cash sales to go unreported, resulting in an estimated RM7.56 million in annual tax leakage.
Working with the Inland Revenue Board (LHDN), MACC targeted 32 branches that have been reporting since 2023
The probe found that the company paid bribes to enforcement officers and local authorities to keep its operations running smoothly and without interference.
In response, MACC froze 121 bank accounts containing approximately RM11.5 million.
Five individuals, including company directors and senior management, were arrested across Putrajaya and the Klang Valley. The suspects, aged between 30 and 50, were detained during a coordinated joint operation.
Yesterday, Magistrate Ezrene Zakariah of the Putrajaya Magistrate's Court granted a remand order for all five suspects.
Four individuals were held for four days, while the fifth was remanded for three days to allow further questioning. The case is being investigated under Section 16 of the MACC Act 2009 for accepting gratification.
Twelve witnesses provided statements to MACC as the investigation continued. The probe also led to the freezing of several luxury assets across Johor and the Klang Valley.
These included five luxury cars worth RM1.5 million, five commercial premises (RM7.3 million), and seven residential units (RM7.7 million). MACC also investigated two industrial properties valued at approximately RM2.3 million as part of the asset freeze.
The total value of seized properties are estimated to exceed RM18.8 million. Investigators examined whether these assets were acquired through the proceeds of illegal activities.
The commission has also identified several other individuals and is expected to take further action soon.
MACC Special Operations Division senior director Datuk Mohamad Zamri Zainul Abidin confirmed the investigation is ongoing, with the team examining all evidence, including potential elements of money laundering
The agency said it remained committed to closing loopholes that allowed such leakages. Authorities are also investigating the scope of the "protection money" network involving local enforcement officers.
The company allegedly operated 32 branches while evading LHDN scrutiny by bypassing official channels.
More statements are expected from stakeholders and employees as the inquiry enters its next phase. The frozen RM11.5 million will remain inaccessible until the investigation is complete.
The chain's operations will continue to remain under the scrutiny of the nation's top anti-graft watchdogs.
