Home Ministry: Putrajaya open to RCI on ‘corporate mafia’ claims if solid grounds established

KUALA LUMPUR, Nov 3 — The federal government has not dismissed the possibility of convening a Royal Commission of Inquiry (RCI) into allegations of a “corporate mafia”, but maintains that this requires a demonstrated need and clearly defined terms of reference, the Home Ministry told the Dewan Rakyat.

The ministry said this in a written reply to Kota Melaka MP Khoo Poay Tiong, who pressed the government on the progress of police investigations, whether identified syndicate masterminds would face prosecution, and whether Putrajaya was prepared to establish an RCI to examine regulatory abuse.

“Regarding the proposal to establish a Royal Commission of Inquiry (RCI), the government is of the view that the matter should be considered based on the reasonableness of extending the investigation, including identifying the scope that truly needs to be examined.

“The government does not rule out the need for it if there is a clear basis and necessity for a more comprehensive inquiry, and solid factual details have been identified,” the ministry said.

The controversy centres on allegations that rogue elements within enforcement bodies abused their statutory authority to pressure corporate executives into selling company equity at artificially depressed valuations, enabling third-party syndicates to engineer hostile corporate takeovers.

To investigate the claims, the Royal Malaysia Police (PDRM) initiated Op Viking through Bukit Aman’s Anti-Money Laundering Crime Investigation Team, opening formal investigation papers on October 14, 2025, under Section 4(1) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.

As of September 25, federal investigators had summoned and recorded statements from 70 individuals, while executing extensive asset freezes exceeding RM409 million.

The restrained holdings include 417 Central Depository System (CDS) accounts and 70 share-trading portfolios valued at roughly RM323.59 million, alongside 404 bank accounts holding RM85.62 million, eight real estate properties, and 11 vehicles.

However, the parliamentary reply stopped short of confirming whether any of the questioned individuals would face formal charges, omitting the identities of primary suspects and declining to provide a definitive timeline for concluding the probe.