What led to the RM8.9 million in false rice purchase claims?

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Former Rice Company Director Charged with RM8.9 Million in False Claims

A former director of a rice company, Fikri Abu Bakar, has been charged with submitting 28 counts of false claims totalling over RM8.9 million to Agrobank Berhad. These claims were allegedly made to finance the purchase of rice, but the invoices submitted contained false statements, and no rice was actually purchased by Fikri Rice Sdn Bhd. The alleged offences occurred between November 18, 2019, and January 16, 2020.
Submission of False Invoices for Financing

The charges detail that Fikri Abu Bakar, in his capacity as director of Fikri Rice Sdn Bhd, used his company's staff to submit 28 invoices to an agent of Agrobank Berhad. These invoices, collectively amounting to over RM8.9 million, were purportedly to claim Trade Working Capital Financing Islamic facilities intended for rice purchases. However, the prosecution contends that these invoices contained false statements, and the company did not undertake any actual rice procurement through these transactions.
Alleged Offences Under MACC Act and Penal Code

The primary charges against Fikri Abu Bakar are framed under Section 18 of the Malaysian Anti-Corruption Commission (MACC) Act 2009. This section addresses the act of submitting false documents or information with the intent to deceive. If convicted under this act, penalties can include imprisonment of up to 20 years and a fine of at least five times the value of the claims or RM10,000, whichever is higher.
Alternative Charges for Using Fake Invoices

In addition to the MACC Act charges, Fikri Abu Bakar also faces 28 alternative charges. These are brought under Section 471 of the Penal Code, which deals with the fraudulent or dishonest use of a forged document. Specifically, he is alleged to have used 28 fake invoices, representing the same RM8.9 million sum, during the same period and at the same location. Conviction under this section, pursuant to Section 465 of the Penal Code, carries a maximum jail term of two years or a fine, or both.
Bail Conditions and Case Progression

During the court proceedings, the prosecution proposed bail of RM200,000 with one surety, along with conditions requiring monthly reporting to the MACC and the surrender of Fikri Abu Bakar's passport. The defence appealed for a lower bail amount, citing the accused's family responsibilities and his diabetic condition, which had recently led to a hospital discharge. Ultimately, the court set bail at RM100,000 with one surety, including the prosecution's requested conditions. The case has been scheduled for mention on March 25 for document submission.

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What led to the RM8.9 million in false rice purchase claims?

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