Sources said the suspects, aged 51 and 54 – who were the director and deputy director of the agency – were detained at their office in Kota Kinabalu about 9.15am today.
The men were said to have monopolised and awarded basic amenities projects worth some RM3.3 billion under their purview, to their siblings since 2010.
The suspects are alleged to have accumulated over RM50 million in ill-gotten wealth, by abusing their positions.
MACC officers who conducted the arrests also seized RM3 million in cash, which one of the suspects had kept in a safe deposit box in his office.
According to sources, the amount involved could be higher as the RM3.3 billion in projects were just allocations approved by the Federal Government, and did not include state-approved allocations.
The anti-graft team is expected to carry out follow-up operations to gather more evidence, including at offices of contractors to whom the projects were awarded.
Newly-appointed MACC Deputy Chief Commissioner (operations) Azam Baki confirmed the arrests but declined to elaborate, as the investigation had not ended.