Sarawak MACC detains 'Kawan Mas' express boat operator

The Malaysian Anti-Corruption Commission (MACC) has detained the operator of the 'Kawan Mas' express boat, which sank in the Sungai Rajang near Giam Bungan in Belaga on May 28 2013, to help investigation into a case, involving embezzlement of subsidised diesel.

Sarawak MACC director Datuk Bahri Mohamad Zin said the arrest was the outcome of MACC intelligence unit's probe following the sinking of the boat, which was carrying 222 passengers from Bakun to Belaga town heading for Kapit.

Three passengers died during the mishap.

"The boat operator, aged 44, was detained yesterday at 6 pm in Sibu. He was found to have owned six express boats, with all of the boats receiving government subsidised diesel.

"According to the conditions for the subsidy, all six boats must be operational but only two were deployed to ferry passengers during festive seasons in order to reap more profits," he told a media conference at the Sarawak MACC office here on Wednesday.

He said, as a result, the boats that were permitted to carry only 64 passengers were frequently compelled to carry excess passengers, who resorted to sitting on the roof, especially during the festive seasons.

Bahri said initial investigations revealed that the subsidised diesel was sold to industries and timber factories in Sibu and Kapit besides being sold to outsiders through transactions in the country's waters.

"MACC believed these activities have been going on for a while. The sinking boat incident was a 'trigger' to MACC to conduct investigations and based on our knowledge, the (express boat) company has made big profits," he said, adding that MACC forensic accounting unit was currenntly investigating the company's

account.

He said MACC had also sought the cooperation of the Domestic Trade, Co-operatives and Consumerism Ministry (KPDNKK) to obtain all documents pertaining to claims made by the company as evidence that part of the subsidised diesel was sold to parties that were not eligible to purchase it.

MACC was in the process of obtaining a remand order on the boat operator while the offence was being investigated under Section 18 of the MACC Act 2009, he said.