Monday 4 November 2024

MACC seizes documents from MoF, Khazanah, PNB and Fashion Valet

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MACC seizes documents from MoF, Khazanah, PNB and Fashion Valet

KUALA LUMPUR, Nov 4, 2024: The Malaysian Anti-Corruption Commission (MACC) today confiscated documents from the Ministry of Finance (MoF), so-called Sovereign Wealth Fund (SWF) Khazanah Nasional Berhad and Permodalan Nasional Berhad (PNB) in its probe into a RM43.9 million loss in Fashion Valet Sdn Bhd.

The MACC is probing Khazanah and PNB’s investment and sale of e-commerce platform Fashion Valet that resulted in the humongous loss.

No News Is Bad News reproduces below a news rteport on the seizure of documents:

MACC confiscates documents from MoF, Khazanah in Fashion Valet probe

FMT Reporters

-04 Nov 2024, 06:03 PM

The documents were confiscated as part of MACC’s investigation into the RM43.9 million that Khazanah and PNB lost when it invested in e-commerce platform Fashion Valet.

MACC confirmed that its investigators searched four locations associated with e-commerce platform Fashion Valet in the capital today.

PETALING JAYA: The Malaysian Anti-Corruption Commission (MACC) has confiscated several financial documents from the finance ministry, Khazanah Nasional Bhd (Khazanah) and Fashion Valet Sdn Bhd.

MACC chief commissioner Azam Baki said the anti-graft agency will be reviewing the documents as part of its investigation into the RM43.9 million loss in government-linked companies Khazanah and PNB’s investment in Fashion Valet, reported Astro Awani.

“On Saturday, I announced that we have opened an investigation. Since their offices were closed over the weekend, we are starting today,” he said.

In a video on TikTok, MACC confirmed that its investigators searched four locations associated with e-commerce platform Fashion Valet in the capital today.

It was reported that one of the locations raided was Fashion Valet’s headquarters in Bangsar.

MACC said it is probing the case under Section 18 of the MACC Act 2009.

The section, which relates to the submission of false claims, carries a maximum prison sentence of 20 years and a fine of RM10,000, or five times the value of the false claims, whichever is higher, upon conviction.

In a written parliamentary reply last week, the finance ministry said sovereign wealth fund Khazanah invested RM27 million and asset manager PNB another RM20 million for minority stakes in Fashion Valet in 2018.

However, they lost RM43.9 million after selling their stake for RM3.1 million at the end of last year to NXBT Partners, an investment holding company controlled by Afzal Abdul Rahim, the CEO of TIME dotCom Bhd.

The ministry said the Covid-19 pandemic and challenging fundraising market conditions had severely impacted Fashion Valet’s business, which required significant new capital to continue operations.

It said NXBT Partners offered to take over Khazanah and PNB’s existing stake in Fashion Valet and inject the necessary capital into the company.

“The losses incurred from the sale of Fashion Valet shares were minimal compared to Khazanah and PNB’s overall earnings for the year,” said the ministry.

Last Friday, Fashion Valet’s founders, local fashion icon Vivy Yusof and her husband, Fadzarudin Anuar, said they would be stepping down from their management posts in the company to take full responsibility for the losses incurred by Khazanah and PNB.

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