Defending Khazanah’s FashionValet loss, Pua says ‘Some joker even asked for RCI’

KUALA LUMPUR, Nov 5 — Former Damansara MP Tony Pua has defended Khazanah Nasional Bhd over losses incurred from investing in Fashion Valet Sdn Bhd, saying failure were more likely than success in the venture capital arena.

Pua said the disproportionate criticism would only foster an aversion towards taking business risks, and cause the country to lose out on future investment “unicorns” such as Grab Holdings.

Pointing out that Grab started locally but relocated to Singapore after Khazanah chose not to invest, Pua said must be prepared for losses such as FashionValet’s if the country intends to be home to other investment stars.

“Does mean that there's no wrongdoing or mismanagement in Fashion Valet? We don't know, perhaps there may be. But those who have criticised so far haven't raised any evidence of such. Everyone just regurgitatate the 90%+ losses in the investment.

“Some joker even asked for RCI on FashionValet,” he said on his Facebook page.

Pua said continuing to “persecute” Khazanah and the founders would lead others to avoid taking the risks that could pay off massively for Malaysia, for fear of experiencing such condemnation

Malaysia would then lose its young entrepreneurs to the rest of the world as a result, with many likely to just take a trip across the Causeway like Grab, he said.

In 2018, Khazanah Nasional and Permodalan Nasional Bhd (PNB) invested a combined RM47 million in FashionValet, with Khazanah contributing RM27 million and PNB RM20 million, to acquire minority stakes.

The two government-linked investment companies later divested their stake for RM3.1 million.

Last week, Prime Minister Datuk Seri Anwar Ibrahim ordered Khazanah Nasional to conduct an internal audit over its investment in FashionValet, which incurred a loss of over RM43 million that the Malaysian Anti-Corruption Commission is also investigating.

On Sunday, Umno Youth chief Dr Muhamad Akmal Saleh proposed a royal commission of inquiry (RCI) into the losses incurred at sovereign wealth fund Khazanah Nasional through investments in FashionValet.

Capital A Group (formerly AirAsia Group) president Aireen Omar previously rejected allegations of fraud and abuse behind the losses at Fashion Valet Sdn Bhd, saying she was privy to its finances as a director.