A source said the official, who has a “Datuk” title, serves as the secretary of a division responsible for overseeing one of the government’s statutory agencies.

His special officer and driver were also arrested yesterday after providing statements at the MACC office in Putrajaya.

“The primary suspect is believed to have recently committed an offence by submitting a proposal for a programme to secure approval for funding, which was then allocated to a related government agency,” said the source.

“The suspect is also believed to have conspired with insiders in the government agency to withdraw the allocated funds, amounting to hundreds of thousands of ringgit, which was then used for personal expenses.”

The senior official has been remanded for four days until Friday. One of the suspects is under a two-day remand until tomorrow while the other has been released on MACC bail.

Magistrate Irza Zulaikha Rohanuddin granted the remand orders at the Putrajaya magistrates’ court this morning.

MACC chief commissioner Azam Baki confirmed the arrests and said the case is being investigated under Section 23 of the MACC Act 2009.