Preliminary findings show no corruption in KWAP’s RM160 million eFishery loss, but MACC will probe investment decisions for transparency
PETALING JAYA: Preliminary findings have not indicated misappropriation or corruption within the Retirement Fund (Incorporated) (KWAP) over its approximately RM160 million investment loss in Indonesian startup eFishery, Prime Minister Datuk Seri Anwar Ibrahim said today.
However, Anwar sad the Malaysian Anti-Corruption Commission (MACC) must still scutinise the investment process, decisions made by KWAP’s investment panel and the board’s final approval.
“I support the MACC’s move to examine whether there was any wrongdoing, breach of the law or element of corruption.
“The MACC must also look at the investment process, the decisions made by the investment panel and what was ultimately approved by the board,” he told the Dewan Negara.
Anwar, who is also Finance Minister, said he had met KWAP’s management and instructed it to cooperate fully with the investigation.
“Based on the preliminary report, I do not believe there were such elements. But the process must remain transparent and accountable,” he said.
Anwar raised the eFishery case while replying to Senator Mohd Hasbie Muda’s question on how KWAP and the Employees Provident Fund could continue securing returns amid global geopolitical uncertainty.
He acknowledged the seriousness of th loss but urged senators to assess it against KWAP’s wider performance.
“The loss of more than RM160 million is real. But the net profit, through the wisdom of the investment panel, management and board, was RM12.9 billion, with fund growth of 9.3%.
“So even as we ask them to be more vigilant, we must look at the overall picture and their method of operation,” he said.
Senator Datuk Abdul Halim Suleiman later questioned whether sufficient checks had been conducted and whether KWAP’s investment panel comprised professionals.
Anwar said all panel members had professional backgrounds and that investment proposals did not require government or Finance Ministry approval.
“There is no government interference. Investment proposals do not need to be brought to the government or Finance Ministry for consideration. That is on record.
“Howeer, I agree that the loss must serve as a warning,” he said.
He said the alleged fraud was highly sophisticated and had also deceived major international investors despite the company undergoing assessments by established firms.
Anwar said the case showed that relying on prominent investors, auditors and assessment firms did not guarantee an investment was safe.
Senator Dr Wan Martina Wan Yusoff then asked whether the selection process would be reviewed and how public funds would be protected.
Anwar said KWAP must learn from the case and reassess its procedures, but cautioned against excluding startups solely because they lacked long-established records.
He said investment losses remained possible, but there could be no tolerance for misappropriation or corruption.
The issue emerged after the Finance Ministry said in a written parliamentary reply dated July 15 that KWAP’s US$47.7 million, or about RM195 million, investment had fallen victim to organised fraud involving manipulated financial statements.
KWAP clarified on July 18 that it actual investment totalled RM163.4 million, representing an approximately 2.51% stake in eFishery.
MACC said the same day that a special team formed on July 17 would investigate the reported losses.
The probe folowed the April 29 conviction of eFishery co-founder and former chief executive officer Gibran Huzaifah, who was sentenced to nine years’ imprisonment for embezzlement and money laundering.
