IT seems the Malaysian Anti-Corruption Commission (MACC) has worked its magic again.
Datin Vivy Sofinas Yusof and her husband Datuk Fadzaruddin Shah Anuar, the co-founders of early e-commerce pioneer and Malaysian start-up poster-child FashionValet (FV), are set to be charged at the Special Corruption Court in Kuala Lumpur tomorrow (Dec 5).
This likely involves the alleged mismanagement of the RM43.9 mil of taxpayer-funded investments from government-linked investment companies (GLICs) Khazanah Nasional Bhd and Permodalan Nasional Bhd (PNB) given MACC in a brief TikTok clip made mention of “criminal breach of trust (CBT)” pertaining to funds belonging to both GLICs.
Conveniently, the real question – why these GLICs threw money into a loss-making fashion start-up in the first place – has been brushed aside.
Let’s rewind. In 2018, Khazanah and PNB splashed out a combined RM47 mil on minority stakes in FV. At that time, the company already had a track record of five consecutive years of losses.
No worries, said the decision-makers, this fashion e-commerce start-up is the next Big Thing!
Fast forward to 2023 and those stakes were sold for a paltry RM3.1 mil. That’s a 93% loss for two of Malaysia’s most “trusted” institutional investors. Who approved these investments?
But instead of dragging Khazanah and PNB’s leadership into the spotlight, the MACC decided it’s easier to go after the poster couple of Malaysian entrepreneurship. It’s a classic Malaysian move: blame the ones who got funded, not the ones who dished out the funds.
Did anyone in Khazanah or PNB bother to ask basic questions before signing the cheques? Was there proper due diligence? Or was it another case of “kawan punya project” rubber-stamped without a second thought?
It’s easier to point fingers at the couple while the bigger systemic failures remain untouched.
This isn’t just about FV alone – it’s about a chronic disease in our GLIC ecosystem. Billions of public funds have been mismanaged over the years while taxpayers are supposed to believe the biggest culprits are a pair of entrepreneurs trying to run a business.
Have we forgotten the lessons from the 1MDB (1Malaysia Development Bhd) scandal where colossal sums of public funds end up in blackholes, leaving taxpayers having to pay through their noses for generations to come?
Let’s not forget, Khazanah and PNB aren’t some naive investors who wandered into this deal blindfolded. They’re staffed with professionals tasked with safeguarding money belonging to the rakyat. Why is not a single person from these two organisations hauled up?
But hey, who needs accountability when you have scapegoats? This is just another reminder that in Malaysia, it’s never about fixing the system – it’s about finding someone to blame so the real culprits can continue their merry mismanagement.
So, while we sharpen our pitchforks for Vivy and Fadza, let’s spare a moment to ask whether Khazanah and PNB’s leadership will be held accountable too? Or is public outrage best reserved for Instagram-famous couples – not the suits sitting comfortably in ivory towers? – Dec 4, 2024
Johan Abu Bakar is a Focus Malaysia reader.
The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.
Main image credit: Corporate Kini
