A former general manager of a Sabah-based government agency is expected to be re-arrested by the Malaysian Anti-Corruption Commission, for alleged money laundering involving about RM9 million.

The re-arrest follows earlier MACC investigations, which led to the suspect being interogated after the commission received information on the man's activities in 2014, a source told Bernama, today.

"MACC believes there were corruption elements leading to money laundering involving about RM9 million following intensive investigations.

"Investigation revealed the suspect had allegedly approved about RM9 million payment to a palm oil company purportedly as compensation following the state government's approval of a piece of land to a government agency for commercial development," he said.

According to the source, the company had asked for the compensation for the cost of oil palm plantation on the land and the land value, although the land was actually owned by the state government and was used by the company without approval.

He said MACC might also arrest the company's owner for allegedly abetting the former general manager in making the false claim. -- BERNAMA