KOTA KINABALU, March 9 — A chief executive of a subsidiary company under the Federal Land Development Authority (Felda) is the latest businessman linked to the state giant to be investigated by graft-busters over a RM40 million hotel in Port Dickson, Negri Sembilan.

The Malaysian Anti-Corruption Commission’s special operations director Datuk Bahri Mohammad Zin said that the suspect, aged 44 years, was arrested on March 1 to facilitate investigations into the embezzlement of funds for the hotel.

“He is being remanded until March 10,” said Bahri in a statement today.

Bahri also said that another businessman, also 44 years old, was arrested on February 26 in connection with the case but was released on March 7.

“So far, we have called 23 people to give their statement in connection with the case, which is under Section 16 (a) (A) of the MACC Act 2009. Investigations are still on-going,” he said.

Several high-ranking individuals affiliated with Felda have been hauled in for questioning in recent weeks.

Last week, MACC arrested a high-ranking Felda Investment Corporation (FIC) official and his middleman over the purchase of a multi-million ringgit boutique hotel in London, the Malay Mail newspaper reported.

FIC is Felda’s investment arm and is chaired by Tan Sri Isa Abdul Samad.

The directors are Datuk Nik Azman, Kota Tinggi MP Datuk Noor Ehsanuddin Mohd Harun Narrashid, Tan Sri Mohd Irwan Serigar Abdullah, Datuk Omar Salim and its chief executive officer Zaid Abdul Jalil.

It was also reported that Isa’s son was summoned by the MACC to have his statement recorded to assist investigations into the case..

FIC acquired the four-star property in London’s Bayswater neighbourhood for £60million (RM330 million) and renamed it the Grand Plaza Hotel on December 15 last year.

Last May, Lavista Sdn Bhd and Pegang Impian Holdings Sdn Bhd, the major shareholders of Encorp Bhd, sold a 49.45 per cent stake in Encorp to FIC for RM239.72 million.

Incorporated on July 2, 2013, FIC has also invested in other properties and recently opened the first Malaysian restaurant in Jeddah.

Felda hogged the spotlight last year after the stock of its subsidiary Felda Global Ventures plummeted.