THE recent revelations of RM43.9 million in losses incurred by Khazanah Nasional Bhd (Khazanah) and Permodalan Nasional Bhd (PNB) following the sale of shares in Fashion Valet Sdn Bhd (FashionValet) have ignited widespread debate.
As social media buzzes with calls for transparency, Malaysians are urging FashionValet’s co-owner and popular fashion influencer Datin Vivy Yusof to clarify how the RM47 million investment by Khazanah and PNB in 2018 was allocated and its impact on the business.
The conversation has been intense, with some netizens suggesting public accountability sessions. “There should be a public hearing like in the Oppenheimer film,” said one user, Syed Asharul Asriq.
Others have proposed that Vivy might leverage a podcast to offer clarity. “Hopefully, Shuib can invite Vivy on his podcast,” said Radar Saham on X, suggesting a platform for her to explain FashionValet’s financial decisions in full view.
This comes after Khazanah and PNB revealled, via a recent written reply in Parliament, that they received RM3.1 million from their divestment.
According to the Finance Ministry, this was part of a “responsible exit strategy” that transferred the stakes to a strategic investor. As outlined by the Ministry, the RM47 million investment, divided between Khazanah’s RM27 million and PNB’s RM20 million, represented a minority interest in FashionValet.
“The total loss from the sale of FashionValet shares is negligible compared to Khazanah’s and PNB’s overall income for the relevant year,” the Ministry explained.
Yet, the public remains unconvinced. Although deemed minor by the Finance Ministry, these losses contribute to a worrying trend of investments by Khazanah that fail to yield returns.
Given that taxpayer funds and deposits are either directly or indirectly involved, Malaysians feel justified in asking for comprehensive accountability. Transparency in such high-stakes investments is paramount to upholding public trust, particularly when public funds are involved.
Khazanah’s reputation has suffered from a string of substantial losses, and this goes beyond FashionValet alone. The issue raises a larger question about governance and investment strategy within government-linked companies (GLCs).
The Madani administration, committed to reform, must ensure all GLC investments are made with rigorous transparency and accountability standards, restoring public confidence that these funds are managed with prudence.
Malaysians deserve a clear view of how their money is managed and why specific investments are made. A structured, transparent process for evaluating and approving investments—alongside regular, detailed reporting on outcomes—could foster the financial accountability necessary for a trustworthy system.
It would be worthwhile for the managing directors, chief investment officers, and board members from that period to offer explanations regarding these investments, ensuring they button up the loose ends.
Ultimately, the Madani government must act decisively to ensure full transparency in Khazanah’s investments. Malaysians are seeking answers, and it is the government’s duty to provide them.
As part of its reform agenda, the administration should mandate measures that guarantee public funds are deployed responsibly, reinforcing the fabric of trust and ensuring that every investment ultimately serves the interests of all Malaysians. – October 31, 2024
A. Azim Idris is a news editor at Scoop.my