FOUR men, including three with the title “Datuk”, have come under the Malaysian Anti-Corruption Commission’s radar for allegedly abusing a cooperative under their charge.
The New Straits Times was made to understand that the men, most of them board members of a cooperative of a government-linked company (GLC), had allegedly abused their position to not only introduce their own multi-level marketing (MLM) system in the cooperative, but also technically force its members to sign up.
Those who applied for loans would have their applications approved if they signed up for the MLM. This will cost them RM6,700 and in return, they will get beauty products, supposedly worth that much.
A source told the NST that the four had been raking in millions of ringgit in the past few years and that they had been abusing their power.
“They sit on the board, so when members of the cooperative apply for loans, they will give approval, but the system makes it such that they would be automatically registered as members in the MLM scheme.
“As a result, about RM6,700 will be deducted from the total amount of loan approved.
“This supposedly serves as the deposit. They will also get products for them to promote and sell,” the source said, adding that the cooperative had more than 20,000 members nationwide.
The suspects, the source said, were also in cahoots with a company to supply goods, including electronic appliances, to members of the cooperative.
“The company will charge the cooperative an extra six per cent from the total cost of the goods, which would cause prices of the products sold to its members to inflate.
“However, the six per cent
additional cost will be pocketed by the four suspects.”
Checks on the cooperative’s social media found a memo demanding a telecommunications equipment supplier company to stop all forms of promotion.
There was also a call for the company to stop setting up counters at any of the GLC company offices and its subsidiaries starting from March.
The move was taken following complaints by members that goods sold by the cooperative were exorbitantly priced.
MACC deputy chief commissioner (operations) Datuk Azam Baki confirmed that the commission had been investigating the cooperative.
“We are trying to gather more information on the case before action can be taken.”