Malaysian Prime Minister Orders Audit on Khazanah's $10 Million Investment Loss
Khazanah Nasional's Investment in FashionValet Under Scrutiny Following Significant Losses
Malaysian Prime Minister Anwar Ibrahim has directed the state-owned sovereign wealth fund Khazanah Nasional Berhad to conduct an internal audit after it reported investment losses of 43.9 million ringgit ($10 million) from its venture into the online fashion retailer FashionValet.
The directive seeks to ensure accountability and responsibility fulfillment by government-linked entities, as elaborated by Anwar in a social media post.
The audit will also consider the involvement of Permodalan Nasional Bhd, another state-linked entity, in the investment.
The call for investigation coincides with a report from the Finance Ministry detailing that Khazanah and PNB invested 47 million ringgit in FashionValet in 2018, only to sell their stakes for a substantial loss in late 2023.
This move also prompted the Malaysian Anti-Corruption Commission (MACC) to launch its own inquiries.
Khazanah had justified its divestment, citing challenges exacerbated by the Covid-19 pandemic, and described the exit as a strategy to collaborate with NXBT Partners, a Malaysian-led company.
FashionValet’s co-founders, Fadzarudin Shah Anuar and Vivy Yusof, have resigned, accepting responsibility for the company's financial difficulties.
The directive seeks to ensure accountability and responsibility fulfillment by government-linked entities, as elaborated by Anwar in a social media post.
The audit will also consider the involvement of Permodalan Nasional Bhd, another state-linked entity, in the investment.
The call for investigation coincides with a report from the Finance Ministry detailing that Khazanah and PNB invested 47 million ringgit in FashionValet in 2018, only to sell their stakes for a substantial loss in late 2023.
This move also prompted the Malaysian Anti-Corruption Commission (MACC) to launch its own inquiries.
Khazanah had justified its divestment, citing challenges exacerbated by the Covid-19 pandemic, and described the exit as a strategy to collaborate with NXBT Partners, a Malaysian-led company.
FashionValet’s co-founders, Fadzarudin Shah Anuar and Vivy Yusof, have resigned, accepting responsibility for the company's financial difficulties.