KUALA LUMPUR – The Malaysian Anti-Corruption Commission (MACC) has begun a probe into the RM43.9 million worth of losses incurred by Khazanah Nasional Bhd and Permodalan Nasional Bhd (PNB) through failed investments in e-commerce platform Fashion Valet Sdn Bhd (FashionValet).
MACC chief commissioner Tan Sri Azam Baki said the probe is vital and necessary as the issue involves taxpayers’ monies.
“I have instructed my officers to start an investigation…It must be determined whether or not criminal elements or other (offences) regarding governance (were part of the issue),” he was quoted as saying by Astro Awani.
Yesterday, FashionValet founders Datin Vivy Sofinas Yusof and her husband Datuk Fadzaruddin Shah Anuar announced their decision to step down from the company as part of a leadership change amid ongoing efforts to stabilise the business.
They also admitted “full responsibility” for the failure of Khazanah and PNB’s investments, explaining that their approach to upscaling FashionValet was overly aggressive and lacked preparation for unforeseen challenges.
The duo’s apology follows government spokesperson Fahmi Fadzil confirming on Thursday that parties involved in the matter are expected to provide their formal responses to address questions raised by various quarters.
In a parliamentary written reply on Tuesday, the Finance Ministry said that Khazanah and PNB had sold their combined RM47 million stake in Fashion Valet for a mere RM3.1 million.
Khazanah, in 2018, had invested RM27 million into the country’s first local fashion e-commerce website while PNB had contributed RM20 million.
Sovereign wealth fund Khazanah has since said that challenges while expanding the platform during the Covid-19 pandemic forced FashionValet to shift its focus from operating as an e-commerce platform for Asean products to promoting its in-house brands dUCk and Lilit instead.
The company, it said, also took measures to rationalise costs and streamline operations, but continued to face challenges, including to secure capital during the difficult fundraising environment in 2022-2023.
PNB, meanwhile, has clarified that its investment in FashionValet was made using its proprietary fund and not the unit trust funds under Amanah Saham Nasional Bhd (ASNB) subscribed by the public.
Reiterating Khazanah’s point on the global pandemic affecting businesses, PNB also said FashionValet represented a genuine venture capital investment aimed at supporting a high-potential Bumiputera company. – November 2, 2024