How did Khazanah and PNB incur a RM43.9 million loss on FashionValet?

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Khazanah and PNB Suffered RM43.9 Million Loss on FashionValet Investment

Khazanah Nasional Berhad and Permodalan Nasional Berhad (PNB) incurred a RM43.9 million loss from their investment in Fashion Valet Sdn Bhd. This financial outcome stems from the combined RM47 million invested in 2018 for minority stakes, which were subsequently sold for RM3.1 million. The Malaysian Anti-Corruption Commission (MACC) has initiated an investigation into this matter due to the use of public funds.
Initial Investment and Subsequent Sale

In 2018, Khazanah and PNB jointly committed RM47 million to acquire minority stakes in Fashion Valet. The value of these stakes diminished significantly over time, leading to their eventual sale for a considerably lower figure of RM3.1 million. This discrepancy between the initial investment and the final sale price accounts for the RM43.9 million loss.
MACC Investigation into Public Fund Usage

The Malaysian Anti-Corruption Commission (MACC) is actively investigating the investment made by Khazanah and PNB in Fashion Valet. This investigation is being conducted because the funds involved originated from public sources, making the substantial loss a matter of public interest. MACC Chief Commissioner Tan Sri Azam Baki has confirmed the probe, emphasizing its importance given the public funds at stake.
Leadership Changes Amidst Controversy

In response to the controversies surrounding the investment and the subsequent financial outcome, the co-founders of Fashion Valet, Datin Vivy Yusof and Datuk Fadzaruddin Shah Anuar, have announced their decision to step down from their positions. This move follows the Finance Ministry's disclosure in the Dewan Rakyat regarding the details of the investment and its sale. Prime Minister Datuk Seri Anwar Ibrahim, who also chairs Khazanah, has stated that he will not interfere with the ongoing MACC investigation.

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How did Khazanah and PNB incur a RM43.9 million loss on FashionValet?

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