KWAP was duped into RM200mil eFishery venture, says Anwar

 Finance minister says there was deliberate fraud with financial reports manipulated by the firm's management.

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.

The prime minister added that other international institutional investors and tech funds also suffered losses from the venture, including Singapore’s Temasek Holdings Pte Ltd and Northstar Group, as well as Japan’s Softbank Group.

Anwar was responding to Wong Chen (PH-Subang), who asked whether KWAP’s management, board of directors or investment panel would take responsibility for the eFishery losses.

KWAP reportedly invested US$47.7 million, or about RM200 million, in eFishery in July 2023. The start-up 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.

In 2024, Gibran was suspended from the company over revenue irregularities. He had admitted in an interview with Bloomberg to manipulating eFishery’s financials but denied embezzling funds.

Anwar said a consortium of investors in eFishery, including KWAP, was in the process of recovering the millions lost from investing in the firm.

He said the consortium lodged reports with the relevant authorities after the actions of eFishery’s management were uncovered.

“The consortium of investors, including KWAP, is continuing all possible efforts to recover the investment funds,” he said.

Anwar said KWAP had also carried out a holistic review of its investment evaluation, approval and monitoring process, with the findings tabled to its board for further discussion.

“Follow-up action has been taken in line with KWAP’s governance framework and the principles of institutional accountability.”  - FMT