Malaysian Authorities Probe State Pension Fund’s Losses in Collapsed eFishery Venture

Malaysia’s anti-corruption agency has launched a probe into losses linked to an investment by the state pension fund, Kumpulan Wang Persaraan Diperbadankan (KWAP), in the failed Indonesian agritech startup eFishery.

A team was formed on Friday to “study and examine the issue thoroughly,” Malaysian Anti-Corruption Commission Chief Commissioner Abdul Halim Aman said in a statement on Saturday.

“The investigation will be conducted fairly, transparently and impartially based on existing legal provisions,” Abdul Halim said. “The public is requested not to speculate on this investigation to avoid confusion and maintain the integrity of the investigation process.”

The inquiry marks the newest chapter in a roughly US$300 million fraud that dismantled one of Southeast Asia’s most prominent startups. Indonesia sentenced eFishery founder Gibran Huzaifah to nine years in prison in April, around a year after he provided Bloomberg News with a detailed account of how he manipulated the company’s financial records at a venture once valued above US$1 billion.

KWAP, as the pension fund is known, invested about 163.4 million ringgit (US$40 million) in eFishery, it said in a statement on Saturday. That represented about 2.51 per cent of eFishery’s shareholding, it said.

“KWAP was a minority shareholder, while the majority of the company’s shares were held by other investors, including major global institutional investors that were similarly affected by the misconduct,” the pension fund said. “KWAP is also continuing to pursue all available avenues to maximise the recovery of its investment.”

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