A source from MACC said the anti-graft agency had conducted a series of raids in and around Kuala Lumpur, including at the headquarters of the organisation, the ministry, and nine firms allegedly involved in the cartel.

The source said the RM1.8 billion contract was awarded to the organisation for a duration of 30 months, from 2021 to 2023.

The organisation is responsible for producing fertiliser for padi and distributing it to farmers across the country through its state-level offices, the source added.

Investigations revealed that the organisation used two methods to fulfil the government contract – purchasing fertilisers directly from five manufacturing companies and acquiring raw materials from four other companies for the processing of fertiliser.

The source said MACC’s probe would focus on potential corruption related to the procurement of fertilisers or raw materials from the companies.

The probe will also examine possible abuse of power by board members of the organisation involved in the decision-making process for selecting these companies.

The MACC has seized relevant documents pertaining to this project from the ministry, the organisation, and the related companies and is currently conducting a detailed review.

Six officials from the ministry and the organisation had been summoned for questioning.

MACC chief commissioner Azam Baki confirmed the probe and did not rule out the possibility of detaining several suspects to assist in investigations.

The case is being investigated under Sections 16, 18, and 23 of the MACC Act 2009.