MACC probes KWAP’s RM163.4mil investment in eFishery

 MACC chief commissioner Abd Halim Aman says the investigation team formed yesterday will carry out its work transparently and impartially.

MACC chief commissioner Abd Halim Aman advised the public against speculating on its investigation to avoid confusion. (Bernama pic)

PETALING JAYA:

The Malaysian Anti-Corruption Commission has launched an investigation into the RM163.4 million investment loss suffered by the Retirement Fund (Incorporated) (KWAP) in Indonesian aquaculture technology company eFishery.

MACC chief commissioner Abd Halim Aman said an investigation team from the commission’s headquarters was formed yesterday to conduct a comprehensive review and assessment of the matter, Bernama reported.

He said the investigation will be carried out transparently and impartially, in accordance with legal provisions.

Halim advised the public against speculating on the investigation to avoid confusion.

The finance ministry, in a written parliamentary reply, had confirmed earlier that KWAP had fallen victim to an alleged organised fraud in eFishery following the manipulation of financial reports by the Indonesian company’s management.

The ministry said a consortium of investors, including KWAP, was pursuing legal proceedings to recover funds.

Media reports previously stated that eFishery was being investigated over alleged financial misconduct, including the manipulation of financial statements that resulted in the company’s revenue being overstated.

According to DealStreetAsia, KWAP invested about US$47.7 million (RM200 million) in eFishery’s Series D funding round in 2023.

However, earlier today, KWAP clarified that its investment in eFishery was RM163.4 million, not nearly RM200 million as reported.

It said this investment only represented about 2.51% of its total shareholding and all efforts were being made to recover what had been invested.

It said KWAP was a minority shareholder in the venture, with the majority of the company’s shares being held by other investors, including major global institutional investors similarly affected by the misconduct in the company.

KWAP reportedly invested in eFishery in July 2023 after the startup was presented as a tech-driven aquaculture firm that would modernise fish and shrimp farming.

Last year, eFishery co-founder Gibran Huzaifah was sentenced to nine years in jail by a court in Bandung, Indonesia, after being convicted of embezzlement and money laundering. - FMT