Malaysia launches military procurement corruption probe – JURIST

The Malaysian Anti-Corruption Commission (MACC) announced on Monday that it has opened a formal investigation into potential corruption in the country’s military procurement contracts.

MACC Chief Commissioner Tan Sri Azam Baki announced that the investigation was launched under Section 17(a) of the MACC Act of 2009, following a complaint filed by political activist Badrul Hisham Shaharin. Section 17(a) bars government agents from receiving “any gratification as an inducement or a reward for doing or forbearing to do, or for having done or forborne to do, any act in relation to his principal’s affairs or business.”

The investigation focuses on military procurement contracts awarded between 2023 and 2025, including 158 projects, each of which exceeded RM500,000 (US$100,000), and over 4,500 smaller projects of undefined scale. The probe involves approximately 40 companies suspected of providing bribes to Army Chief General Tan Sri Muhammad Hafizuddeain Jantan. Hafizuddeain was supposed to give his statement to the authorities on Sunday, but was admitted to an intensive care unit and he remains hospitalized.

According to local media, the MACC has seized six bank accounts belonging to the senior officer and his family members. On Saturday evening, MACC officers conducted searches at the Defence Ministry and the suspect’s official residence, seizing luxury items including watches and handbags which are believed to be connected to the investigation.

Defence Minister Datuk Seri Mohamed Khaled Nordin issued a statement on Saturday placing the officer on administrative leave, explaining that this action ensures “the investigation process goes smoothly without any conflict of interest.”

This investigation represents the latest development in a series of high-profile corruption probes in Malaysia. In January 2024, MACC launched an investigation into Tun Abdul Daim bin Zainuddin, a close aide to former Prime Minister Mahathir Mohamad, over alleged failure to declare assets. That same month, the MACC announced that it had recorded the testimony of former Prime Minister Ismail Sabri Yaakob regarding funds that were “spent for publicity and promotion purposes.” The current military procurement investigation continues Malaysia’s increased anti-corruption efforts, which have targeted senior government and military officials following the 1MDB and littoral combat ship project scandals. 

In September, the Malaysian Parliament passed the Government Procurement Bill 2025, seeking to govern public procurement processes and prevent procurement-related scandals. The bill establishes “open and competitive procurement method” as the primary method in government procurement. This aligns with international standards outlined in the UNCITRAL Model Law on Public Procurement 2011.

While tabling the bill, Prime Minister Anwar Ibrahim stated, “we stress that the culture of awarding contracts through direct negotiations must end. We can no longer tolerate corrupt policies that open the door to leakages, cronyism, and abuse of power.”