MACC probes Khazanah, PNB's RM44m loss in FashionValet

MACC has launched an investigation into the losses sustained by Khazanah Nasional and Permodalan Nasional Berhad (PNB) from their investments in local fashion brand FashionValet.

Its chief commissioner Azam Baki reportedly said he ordered anti-graft investigators to probe the matter, which he regarded as concerning as it involves the people’s money.

“I have ordered my officers to initiate an investigation because this involves the issue of public funds and interest.

“So we have to investigate whether there was an element of crime involved, or if there was any issue in governance,” he said, as quoted by Astro Awani.

Meanwhile, Prime Minister Anwar Ibrahim, who is also Khazanah’s chairperson, ordered the company to conduct an internal audit to “investigate problems linked to its recent losses of investment worth RM43.9 million.”

In a post on X this afternoon, he said the order was in line with his previous instruction for the National Audit Department to audit over 2,000 GLCs in the country.

The Finance Ministry, in a written parliamentary reply on Oct 28, stated that Khazanah and PNB’s share value in FashionValet had dropped by almost RM44 million when the business was sold in 2023 compared to the amount they spent in 2018.

It was also stated that Khazanah pumped in RM27 million and PNB RM20 million to acquire a minority stake in the fashion brand - in a plan to boost bumiputera businesses in the e-commerce sector.

However, the ministry said FashionValet was subsequently hit with financial troubles during the Covid-19 pandemic, despite the same period being a major boon for many local e-commerce businesses.

Since the issue came into the spotlight, FashionValet and the two state-owned investment companies have been heavily criticised by the public.

Following this, Communications Minister Fahmi Fadzil yesterday called the companies to address the public’s concerns.

He also asked the public to give them some time to provide an official response.

Subsequently, FashionValet founders - entrepreneur Vivy Yusof and her husband Fadzaruddin Shah Anuar - apologised for the controversy and relinquished their positions in the business.

FashionValet founders step down, accept blame over RM44m loss

Fahmi: Khazanah, PNB should explain FashionValet deal

Khazanah, PNB sold RM47m stake in FashionValet for RM3.1m