According to a source from the anti-graft agency, the duo, in their 50s, are believed to have transferred part of the ministry’s RM1.2 billion funds to contractors and negotiators for purposes that did not relate to the development’s cost.

“This misappropriation of funds is very serious seeing that it involves government allocations,” the source who did not wish to be named told FMT.

The suspects will be remanded for four days beginning today to facilitate investigations.

When contacted, MACC investigation division senior director Hishamuddin Hashim confirmed the arrest.

He also said the case is being probed under Section 23 of the MACC Act for abuse of power.

Separately, the MACC in Kedah detained three enforcement officers from two different government agencies for allegedly soliciting and receiving bribes of up to RM36,000 in exchange for protection of massage parlour workers without valid employment permits.

Sinar Harian quoted a source from the agency as saying that the trio were arrested yesterday, between 8pm and midnight, while providing their statements at the MACC’s office in Sungai Petani.

“The investigation is ongoing and we have not ruled out the possibility that there may be others involved,” the source said, adding that the suspects were believed to have received monthly bribes of up to RM6,000 since January.

The magistrates’ court in Sungai Petani has ordered all three suspects, aged between 30 and 40, to be remanded until Saturday.

According to the Malay daily, Kedah MACC director Ahmad Nizam Ismail confirmed the arrests and said the case is being investigated under Section 16(a)(B) of the MACC Act.