US Charges Three Former Telekom Malaysia Executives Over Rp354 Billion Embezzlement

The United States has charged three former senior executives of Telekom Malaysia in connection with alleged embezzlement of more than US$20 million, or about Rp354.1 billion, based on an exchange rate of Rp17,705 per US dollar. The United States Department of Justice said the trio allegedly ran a fraud scheme against the Malaysian state-owned telecommunications company for almost six years. The three defendants are Mohd Hafiz Lockman, Mohd Yuzaimi Yusof, and Khanh Thuong Nguyen. They were senior officers at Telekom Malaysia’s US subsidiary. The alleged actions took place from July 2020 to February 2026. They are also accused of defrauding suppliers, auditors, regulators and business partners in the US. ‘The three individuals are suspected of having carried out a deliberate and planned embezzlement scheme, falsifying company records for their own financial gain,’ said FBI official James C Barnacle Jr. Mohd Hafiz was arrested at San Francisco International Airport. The other two defendants surrendered to US authorities last month. All three now face charges of conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. The company also said the results of the investigation have been submitted to the relevant authorities. ‘The company will continue to fully cooperate with the US Department of Justice,’ Telekom Malaysia said in a statement. The Department of Justice said it would not press charges against Telekom Malaysia because the company reported the alleged criminal conduct to authorities itself. This move aligns with a new DOJ policy that began encouraging companies to voluntarily report internal wrongdoing. Reuters had previously reported the policy in March.