The loan was linked to a RM162 million housing project for civil servants in Perak, said an MACC source.

The Putrajaya magistrates’ court issued a five-day remand order for the man until May 11 following an application by MACC.

The source said the director, who is in his 60s, was arrested at around 5.15pm yesterday after providing a statement to MACC at its headquarters in Putrajaya.

“The suspect is believed to have submitted documents containing false information to a bank in March to secure a disbursement of RM1.6 million under a RM69 million financing facility provided by the bank for the housing project,” said the source.

MACC investigation division senior director Zainul Darus confirmed the arrest and said the case is being investigated under Section 18 of the MACC Act 2009 for filing false claims.