Megat was instructed by his principal Red Construction Sdn Bhd to negotiate with squatters who occupied state land for many years. The state was to be developed by Red Construction Sdn Bhd which promised to give Megat RM 1000 as a commission for each settlement that he made.

Without his principal knowledge, the squatters also agreed to pay Megat RM 2000 if he managed to demand a higher compensation from Red Construction Sdn Bhd for vacating the land. Each squatter's family was subsequently given RM 40,000 as compensation. The squatters paid Megat RM 2000 as promised. Red Construction Sdn Bhd has recently found out about the secret commission received by Megat.

Advise Red Construction Sdn Bhd on any possible legal action against Megat.