The Khazanah-FashionValet investment issue became public on 29 October 2024, after Malaysia's Ministry of Finance said in Parliament that government-owned companies, Khazanah Nasional and Permodalan Nasional Berhad (PNB), lost RM43.9 million, which is about USD 10.74 million when they sold their shares in the online store FashionValet. The company was started by Vivy Yusof and her husband, Fadzaruddin Shah Anuar.[1] The two groups had thought their shares were worth RM47 million but sold them for only RM3.1 million.[2] This caused anger among people and led to calls for the Malaysian Anti-Corruption Commission (MACC) to investigate.[3][4]
Background
FashionValet was started to sell a mix of local and international clothing brands. Later, the company made its brands, dUCK and Lilit, which focused on modest clothing.[5] Reports show that FashionValet lost money every year from 2012 to 2017, with losses going from RM166,793 in 2012 to RM10.7 million in 2017.[6] In 2018, FashionValet paid RM95 million to buy 30 Maple Sdn Bhd, which owned the dUCK brand.[7]
Khazanah and PNB invested a total of RM47 million in FashionValet to help support a local business.[1][6] The COVID-19 pandemic made business hard for FashionValet, causing more losses.[6] By the end of 2022, FashionValet lost RM34.5 million that year, while sales were RM112.8 million.[6]
In late 2023, Khazanah and PNB sold their shares in FashionValet to NXBT Partners, a company owned by TIME dotCom CEO Afzal Abdul Rahim, causing a big loss.[2][8] NXBT Partners paid about US $1.1 million for over half of the company’s shares. Financial records showed that by the end of 2023, FashionValet's losses reached RM127.6 million.[8]
Investigation
MACC began an investigation under Section 18 of the MACC Act 2009, which is about making false claims.[3][9] On 4 November 2024, MACC took documents from the Ministry of Finance, Khazanah, PNB, and FashionValet's offices.[9] MACC also froze personal and company bank accounts owned by Yusof and Fadzaruddin, worth about RM1.1 million, and seized luxury items from their home in Kuala Lumpur, valued at around RM200,000.[10][11]
MACC is now looking into business transactions between FashionValet and 30 Maple Sdn Bhd from 2018 to 2023 to check for possible misuse of funds.[7] The MACC Chief Commissioner said Yusof and Fadzaruddin might need to explain some luxury items shown on their social media.[7]
Reactions
After the news of the financial loss, many people criticized FashionValet’s management and questioned how the company received so much support despite its losses.[12] Communications Minister Fahmi Fadzil asked for answers from Khazanah, PNB, and FashionValet.[4][13]
On 1 November 2024, Yusof and Fadzaruddin left their jobs at FashionValet. Yusof expressed regret for the loss and said their choice would let FashionValet try new plans.[14] Some critics said that resigning was a way to avoid responsibility.[15] FashionValet director Aireen Omar defended the company, saying the loss was due to COVID-19 and not because of fraud.[16]
Many government leaders called for better rules to manage public funds invested in companies. Some said that resigning was not enough when large public funds were lost.[17]
On November 7, 2024, the Public Accounts Committee (PAC) said it will check how Khazanah and PNB lost money in FashionValet.[18] The PAC wants to know how they decided to give money to the company and if anything went wrong. Many public voices have called for more control and rules to prevent similar losses in the future when state-owned funds invest in businesses. They say that careful steps should be taken when using public funds, especially in high-risk companies.[17]
Some leaders, such as Petaling Jaya MP Lee Chean Chung, have asked Khazanah to explain why it invested in FashionValet despite the company’s long history of losses. Lee said it is important to show transparency in how public money is used.[19]
Former Deputy Public Prosecutor Liyana Marzuki said that leaving the company was not enough, calling it a way to avoid facing the problem. She said those in charge should answer for the company's losses.[15]
Criminal charges
On 5 December 2024, Vivy Yusof and her husband, Fadzaruddin Shah Anuar, were charged in the Kuala Lumpur Sessions Court under Section 409 of the Penal Code. They were accused of moving RM8 million from FashionValet's bank account to another company, 30 Maple Sdn Bhd, without permission from the company’s board of directors. Both Vivy and Fadzaruddin said they were not guilty. The court set the case for mention on 22 January 2025.[20]
