The suspect, who holds the “Datuk Seri” title, is believed to have paid the CEO RM8 million to secure a RM400 million loan, despite the company not meeting financing requirements.

However, the project, which was supposed to span 30,000km and connect Southeast Asia, did not take off.

Utusan Malaysia quoted the MACC source as saying the RM400 million has since been traced to several offshore accounts.

The source said the sum was later channelled to a non-existent investment firm, set up in 2018, which targeted high-profile investors.

MACC arrested the suspect, in his 50s, while he was giving a statement at its headquarters in Putrajaya yesterday.

The authorities also raided four locations in Selangor and Kuala Lumpur, including the suspect’s home and office, and froze 12 bank accounts – both personal and corporate – with a combined total of about RM400,000.

MACC’s special operations division senior director Zamri Zainul Abidin confirmed the arrest and said an investigation is being carried out under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.