GEORGE TOWN, Aug 27 — The Penang government will defer to Putrajaya on the status of a federal agency chairman currently under investigation by the Malaysian Anti-Corruption Commission (MACC) for alleged abuse of power in a land disposal deal.

Chief Minister Chow Kon Yeow also said that the state respects the MACC’s jurisdiction and will allow the agency to conduct its probe without interference.

“I believe this is under the MACC’s jurisdiction and we are giving the MACC space to continue its investigation,” Chow said when asked for comment.

Addressing whether the chairman should be suspended, Chow clarified that the authority lies with the federal government, as the entity in question is a federal agency rather than a state-run body.

“It is up to the federal government as it is a federal agency, not a state agency,” he added.

The case emerged last Friday when the MACC remanded five individuals to assist in investigations into the disposal of land owned by a federal agency in Penang.

The suspects included the agency's chairman, two company directors, a technical manager, and a female clerk.

The chairman, a Datuk in his 50s, is suspected of abusing his former roles as deputy chairman and board member in 2015 to sanction the sale of eight plots of land in South Seberang Perai.

The land was allegedly sold to a company linked to his associate at below-market prices, resulting in estimated losses of approximately RM1.96 million.

The MACC is continuing its investigation into the matter while the chairman was released on RM10,000 bail yesterday following the completion of a week-long remand.