PRIME Minister Datuk Seri Anwar Ibrahim has taken decisive action by directing the Malaysian Anti-Corruption Commission (MACC) to investigate the recent financial loss of RM43.9 mil by Khazanah Nasional Bhd and Permodalan Nasional Bhd (PNB) in e-commerce platform FashionValet Sdn Bhd (FV).
This company was founded in 2018 by Vivy Yusof and her husband Fazaruddin Anuar who have since attributed the business downfall to financial downturn linked to the COVID-19 pandemic, aggressive marketing and limited market research. They have committed to taking full responsibility for the loss.
Many in the public are questioning how Khazanah nd PNB – both of which are government-linked investment companies (GLICs) – could invest RM43.9 mil without thorough due diligence.
As these funds are ultimately sourced from the public – or taxpayers’ money to bluntly put it – transparency and accountability are essential.
The pandemic undoubtedly impacted many businesses yet it cannot fully explain the financial struggles of FV especially its decision to open physical stores as opposed to focusing on online store expansion.
Moreover, numerous companies affected by the pandemic have shown resilience and recovery in the post-pandemic era, leading to questions about FV’s ability to adapt and weather these challenges.
Prompt action
MACC chief commissioner Tan Sri Azam Baki has confirmed that the MACC has already initiated an investigation to determine if there were any criminal elements in the investment process or the subsequent losses.
The prompt response by the MACC in this case contrasts with a previous, slower response to a separate case involving a direct response transit (DRT) pilot project which also raised questions about public funds and potential conflicts of interest.
Anwar has emphasised that he fully supports the MACC’s investigation into the FV case and will not interfere with the agency’s pursuit of justice.
The government aims to ensure accountability and transparency – a point that Anwar who is also the Finance Minister has consistently stressed as part of his commitment to reducing wastage of public funds.
Such stance is a refreshing departure from policies that previously appeared to focus on supporting specific groups or businesses.
Instead, he is working towards a more inclusive approach that benefits all Malaysians, prioritising the welfare of those in need over propping up already well-resourced entities.
Anwar has openly stated that his government is committed to focusing on the nation’s underserved and marginalised populations.
There have been instances of Bumiputera ventures facing financial difficulties, underscoring the need for prudent management of public investments.
Government agencies like Khazanah and PNB should be more diligent in evaluating potential investments to avoid any appearance of favouritism or waste of public funds.
With Malaysia facing a debt of RM1.5 tril which is largely due to past financial mismanagement, a renewed commitment to transparency and responsible stewardship is paramount.
The public expects that those accountable will be held to the highest standards and that necessary measures will be taken to prevent similar situations in the future.
Anwar has a unique opportunity to translate his promises into action, showing that his administration values integrity and accountability in the handling of public funds.
The Madani government which is elected on a platform of reform has the chance to reaffirm that its priority is driving the nation forward and fostering responsible governance across all sectors.
Let us wait and see if the action by MACC with regard to FV is in tandem with the words of Anwar. – Nov 3, 2024
Former DAP stalwart and Penang chief minister II Prof Ramasamy Palanisamy is chairman of the United Rights of Malaysian Party (Urimai) interim council.
The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.
Main image credit: vivyyusof/Instagram
