Probe into missing RM10m progressive payment

NST 25/02/2002 By V. Ramanan

Kuala Lumpur: Sun. - Two former executives of a construction company are alleged to have siphoned RM10 million last year in "progressive payment" to a subcontractor carrying out a low-cost housing project.

They are alleged to have worked in tandem with two directors of the sub-contracting firm.

Police sources said the sub-contractor was to have been paid about RM5 million for managing the project under a five-year RM26 million contract.

The project, from 1999 to 2004, involved the construction of low and medium cost houses for lower income earners.

The sources said the construction company lodged a police report on the matter last year.

They said the case was currently being investigated by the Federal Police commercial crimes department.

It is understood that police had questioned the duo and two others from the sub-contracting firm, one of who died later.

"We are still investigating the transactions which took place last year between the two parties," said a source.

It is understood that police have finalised the case. "We should be wrapping up the case very soon," he said.