KUALA LUMPUR: The Public Accounts Committee (PAC) will look into whether to hold proceedings on Retirement Fund Incorporated’s (KWAP) investment in Indonesian startup eFishery, which allegedly committed planned fraud that cost the Malaysian government around RM200mil.
PAC chairman Datuk Mas Ermieyati Samsudin said that while the issue was not in the PAC’s current proceeding agenda, it is possible the issue would be discussed by the committee.
“For now, it is not in the PAC’s proceedings plans but we might discuss it later to see whether PAC needs or does not need to include it in (future proceedings).
“For now, we already have many proceedings that are waiting for us to complete so maybe we will discuss the matter at a later date before making a decision,” she said at a press conference in Parliament yesterday.
KWAP is reported to have invested US$47.7mil (RM200mil) into eFishery in July 2023.
In a parliamentary written reply on Wednesday, the Finance Ministry alleged that eFishery had conducted a deliberately well-planned fraud on KWAP and its other investors.
It said the decision to invest in eFishery had gone through comprehensive evaluation, approval and monitoring processes by KWAP.
“This included internal evaluation, independent due diligence as well as scrutiny of financial, legal and operational aspects before investment proposals are approved.
“The decision was then made based on available information which included verification of financial statements from certified international auditors,” it said.
It said KWAP’s investment was also made in tandem with a consortium of other reputable institutional investors and international technology funds, all of which had conducted their own independent due diligence.
Among the reputable investors included Temasek, SoftBank, 42XFund and Northstar, which the ministry said conducted their own internationally recognised investment evaluation, control and governance to ensure all information from eFishery was complete and valid for investment consideration.
“However, this eFishery investment was a well-planned fraud caused by manipulation of financial reports by eFishery’s management,” it added.
It confirmed that the consortium of investors, including KWAP, had taken firm steps in terms of legal action, fund recovery, internal governance review and also strengthening controls.
“The consortium of investors has lodged reports with the relevant authorities and taken appropriate legal action,” it said.
It was responding to a question from Subang MP Wong Chen on whether accountability actions would be taken against KWAP board members and senior management due to the failed investment into eFishery.
Founded in 2013, eFishery was initially promoted as a potentially revolutionary technology-driven aquaculture company that could modernise the fish and shrimp farming industry.
However in December 2024, a whistleblower report said the company had faked its financial status, misreporting losses as profits and significantly inflating its revenue figures.
In April, eFishery co-founder Gibran Huzaifah was sentenced to nine years’ imprisonment by a court in Bandung, Indonesia, after being convicted of criminal breach of trust and money laundering.
