Police probe bank’s RM19m loss over loan fraud
KUALA LUMPUR, Feb 18 — The police are investigating the alleged loss of RM19 million by a local bank which had loaned that sum to two companies for the alleged supply of spare parts for MiG-29N fighter jets belonging to the Royal Malaysian Air Force (RMAF), Inspector-General of Police Tan Sri Ismail Omar said today.
He said the bank lodged a police report after finding out that the two companies did not exist.
“The investigation started under section 420 of the Penal Code after the report was made last week,” he told reporters after Prophet Muhammad’s birthday celebration by the police here.
Ismail was asked to comment on a newspaper report today on the case of two companies which had applied to a bank for a corporate loan to enable them to buy MiG-29N spare parts.
The two companies had allegedly submitted complete documents, convincing the bank to approve the loan.
A subsequent check by the bank revealed that the companies did not exist and the bank could not trace the individuals who had secured the loan. — Bernama