Is Malaysian construction giant IJM Corporation Bhd now under the radar of the UK’s Serious Fraud Office (SFO) over alleged money laundering and corruption linked to multi-billion ringgit investments in Britain?
Speculation has been rife since last week, following the circulation of purported confidential documents from Malaysian enforcement agencies, claiming the SFO is actively investigating IJM. Adding to the controversy, the names of former Prime Minister Ismail Sabri Yaakob and current Economy Minister Rafizi Ramli have been dragged into the political money narrative said to be the true trigger behind the probe.
Political Funds & Suspicious Corporate Transactions
Intelligence sources allege that political funds tied to Ismail Sabri were funnelled through IJM’s corporate deals as “rewards” for securing government infrastructure contracts. These allegations surfaced after the Malaysian Anti-Corruption Commission (MACC) seized RM177 million in cash, gold bullion, and luxury items earlier this year from certain properties.
According to leaked documents, part of these funds was believed to have been used to bankroll political campaigns, positioning IJM as a channel for suspect transactions. While no official evidence has been publicly announced, the intelligence leaks strongly suggest the SFO is examining these corporate–political linkages in depth.
JRL Group Acquisition – A Money Laundering Front?
The central focus of the SFO probe is IJM’s acquisition of a 50% stake in JRL Group Holdings Limited (JRL) valued at about £50 million (RM280 million).
What raised eyebrows was JRL’s financial record: the company had accumulated losses of over £80 million (RM488 million) in 2022–2023. Despite this, IJM proceeded with the acquisition – a move investigators view as potentially a front for laundering public funds.
Beyond JRL, the SFO is also scrutinising IJM’s extensive UK portfolio, worth more than £3 billion (RM16.8 billion), including mixed-use property developments, rail infrastructure projects, and purchases of historic buildings in London. Sources claim “many more questionable transactions” exist, though the full investigation file remains under wraps.
SFO–PDRM Cooperation
It is understood that the SFO is strengthening its case using financial records, corporate documents and banking information provided by Malaysian authorities – including the Royal Malaysian Police (PDRM) and domestic financial regulators.
Although the SFO has yet to publicly name IJM, leaked documents clearly identify the company and the JRL takeover as central targets of the probe, alongside other cases.
Political Intrigue Complicates the Investigation
Local politics adds another layer of complexity. Ismail Sabri is alleged to have benefitted from political funding, while Rafizi Ramli is said to have been threatened after his exposure of certain corporate interests.
This narrative underscores how mega contracts, political financing, and listed conglomerates intersect in Malaysia’s power landscape – and now, the question is whether the SFO will present hard evidence or if this remains corporate rivalry speculation.
IJM’s Reputation at Stake
For market analysts, IJM Corp’s reputation now hangs in the balance. If wrongdoing is proven, investor confidence in Malaysia’s government-linked companies (GLCs) could be severely shaken. If, however, the allegations are part of political–corporate manoeuvring, it will highlight how defamation and reputational sabotage are wielded as weapons.
What is certain is that the SFO’s investigation into IJM and its JRL Group transaction marks a new flashpoint – extending Malaysia’s long-running saga of political–corporate scandals.
Is this an attempt to take over IJM Corporation from the group of Tan Sri Krishnan Tan and Lee Chun Fai, the Group Chief Executive Officer & Managing Director (“CEO & MD”)?
For the record, the largest shareholders of IJM Corporation are Permodalan Nasional Berhad (PNB), the Employees Provident Fund (EPF/KWSP), and Retirement Fund Incorporated (KWAP).
