Malaysia nabs 10 in loan scandal

Malaysia nabs 10 in loan scandal

KUALA LUMPUR (AFP): Ten senior executives of a troubled Malaysian merchant bank, Rakyat Merchant Bankers Bhd., have been arrested in connection with a 180-million ringgit (US$72 million) loan scandal, police officials said yesterday.

Nine were arrested at their homes in an eight-hour operation Wednesday, while another surrendered to police, Malaysian commercial crime police said.

"We have no comments. We are still investigating," a spokesman of the commercial crime section at police headquarters said.

The Star English-language daily reported Thursday the nine, aged between 30 and 48, were arrested following several months of investigations into alleged lending irregularities since November 1993.

The Star said several important documents relating to the approval of the loans were also seized from several of the suspects.