Gov't To Focus On Stronger Controls After Fashionvalet Investment Loss - Amir Hamzah
KUALA LUMPUR, Nov 12 (Bernama) -- Findings from the internal audit and the Malaysian Anti-Corruption Commission (MACC) investigation into the RM43.9 million investment loss in FashionValet Sdn Bhd (FashionValet) will be used to improve the governance of Khazanah Nasional Bhd (Khazanah).
Finance Minister II Datuk Seri Amir Hamzah Azizan said the government will continue to place strong emphasis on and strengthen governance and control of public fund usage.
"Given that MACC is still investigating this case and Khazanah’s internal audit is ongoing, Khazanah should be given space to complete this investigative process. The finalised findings will be used to enhance Khazanah’s governance," he said.
He said this while winding up the debate on the Supply Bill 2025 at the policy stage for the Ministry of Finance in the Dewan Rakyat today.
Amir Hamzah elaborated that Khazanah and Permodalan Nasional Bhd's (PNB) 2018 investment in FashionValet, which was then a promising e-commerce fashion platform, was in line with the government's priority in the technology sector.
He said Khazanah and PNB understand that investments in start-ups carry higher risks than regular investments, but this is consistent with both government-linked companies' (GLC) mandate to support strategic investments.
“It is important to view the investment returns with a broader perspective, including positive returns, such as in the local dairy business, Farm Fresh Bhd, which is part of venture capital investments in the agriculture sector.
"In the case of Farm Fresh, Khazanah achieved returns more than 13 times the investment, amounting to a value exceeding RM800 million," he said.
In 2018, Khazanah and PNB invested RM27 million and RM20 million, respectively, for minority stakes in FashionValet.
The Ministry of Finance, in a written response in the Dewan Rakyat on Oct 28, stated that both GLCs received RM3.1 million from the sale of shares in FashionValet.
-- BERNAMA
