MOF: KWAP deceived on efishery investment, fund recovery underway
The Malaysian Ministry of Finance has confirmed that the state retirement fund, KWAP, was defrauded during its investment in the Indonesian startup eFishery. The ministry is currently pursuing legal action and internal governance reviews to recover the lost funds.
Why it matters
This case highlights the risks of private market investments by public pension funds and the importance of rigorous due diligence.
KUALA LUMPUR: The Ministry of Finance (MOF) has found that the Retirement Fund (Incorporated) (KWAP) was deceived about its investment in eFishery and that it was a well-planned fraud.
The ministry said that the Indonesian aquaculture startup's management had manipulated its financial statements.
"Following the discovery, the consortium of investors, including KWAP, has taken firm measures, including legal action, fund recovery efforts, internal governance reviews and strengthened controls," the MOF said in a written reply published on Parliament's website today.
The consortium, including KWAP, has lodged a report with relevant authorities, initiated the appropriate legal action and is continuing to make every effort to recover the investment funds,
The MOF said KWAP had also conducted a comprehensive review of its investment evaluation, approval and monitoring processes, with the findings presented to its board for detailed scrutiny and discussion.
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