Malaysia's anti-corruption agency has launched an investigation into losses linked to state pension fund Kumpulan Wang Persaraan Diperbadankan's (KWAP) investment in the Indonesian agritech startup eFishery, which recently collapsed. The probe was announced on Saturday, following a statement from the Malaysian Anti-Corruption Commission's chief commissioner, Abdul Halim Aman, who emphasized that the investigation will be conducted fairly and transparently.
Key Details
KWAP invested approximately RM163.4 million (about US$40 million) in eFishery, accounting for 2.51% of the company's shares. The pension fund stated that it was a minority shareholder, with the majority of shares held by other investors, including major global institutional investors affected by the company's downfall. The fund is actively seeking ways to recover its investment.
Background
The collapse of eFishery has been linked to a fraud case involving its founder, Gibran Huzaifah, who was sentenced to nine years in prison in April for falsifying the company's financial accounts. eFishery, once valued at over US$1 billion, faced significant losses, impacting several high-profile investors, including SoftBank and Temasek. The company's failure has raised concerns about the risk management practices of institutional investors involved in high-stakes startups.
The investigation into KWAP's losses may affect investor sentiment towards similar agritech investments in Southeast Asia, particularly among institutional investors. Concerns about governance and transparency in startup funding could lead to increased scrutiny of investment practices in the sector.
Watch for further developments regarding the investigation and any potential recovery efforts from KWAP in the coming weeks.