KANGAR: The RM260 million Timah Tasoh West Flood Diversion project in Arau is now believed to be under the Malaysian Anti-Corruption Commission's (MACC) watchlist, a source revealed today.
It was learnt that MACC was zooming in on the project following the arrest of a Perlis Department of Drainage and Irrigation (DID) director a few days ago.
The source said among the key issues the grafbusters had narrowed down was the director's alleged failure to release payment to the contractors, resulting in the delay that caused a massive flood in Tebing Tinggi area last September.
"The 22-kilometre Timah Tasoh West Flood Diversion project is the biggest project under DID in Perlis and MACC is likely to be zooming on the project.
"The project had taken off in 2014, the same year the director assumed the post.
"There were rumours that the director had derailed payment to the project contractors despite getting allocation from the federal government," he said when contacted.
It was also reported that the director had been living a lavish life since 2014 from kickbacks he allegedly received from contractors awarded with projects by the department in the state.
MACC source revealed that the man had been pocketing 10 per cent of projects’ cost between 2014 and last year.
Investigations into the case also revealed that the director used a third party company to take on projects awarded by DID.
Investigation also revealed that the man had transferred his ill-gotten gains to several accounts belonging to him and his relatives.
The two businessmen, aged 39 and 50, had allegedly been abetting the director in committing the offence.
Yesterday, MACC had seized almost RM900,000 cash from a house belonging to one of the businessmen and frozen four bank accounts with RM2.9 million, belonging to the suspects and his children.