KWAP was duped into RM200mil eFishery venture, says Anwar
Malaysian Prime Minister Anwar Ibrahim stated that the Retirement Fund Inc (KWAP) was defrauded of RM200 million by the Indonesian aquaculture startup eFishery. The company's management allegedly manipulated financial statements, leading to losses for several major international investors.
Why it matters
This case underscores the risks associated with institutional investment in high-growth tech startups and the importance of rigorous due diligence.
KWAP has a robust and transparent investment governance framework, where all investments undergo due diligence before gaining approval, says finance minister Anwar Ibrahim.
PETALING JAYA: The Retirement Fund Inc (KWAP) was duped into channelling nearly RM200 million into an aquaculture start-up in Indonesia known as eFishery, finance minister Anwar Ibrahim said, describing it as deliberate fraud.
Anwar said KWAP had a robust and transparent investment governance framework, where all investments undergo due diligence before they are approved.
"The eFishery investment was decided after the evaluation processes stated, based on information provided, including confirmation of its financial statements by internally accredited auditors.
"The consortium of investors which includes KWAP also conducted an independent due diligence process to ensure that the information provided was complete and accurate.
"Nonetheless, the eFishery investment was a deliberate fraud as eFishery's management had manipulated the start-up's financial statements," he said in a written parliamentary reply.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in