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KUALA LUMPUR: A video posted by Malaysian Anti-Corruption Commission (MACC) of its raid on the offices of a fashion e-commerce brand has raised scepticism among some netizens, though others expressed support for the agency’s move.
Graft busters descended on the offices of FashionValet on Monday (Nov 4), along with those of the Finance Ministry, Khazanah Nasional, and Permodalan Nasional Bhd (PNB), according to the New Straits Times.
This comes amid loss of US$10 million of state funds in an investment into FashionValet.
The MACC is also scheduled to record statements from FashionValet’s co-founders, well-known husband-and-wife entrepreneurs, Ms Vivy Yusof and Mr Fadzarudin Shah Anuar on Tuesday at its headquarters, according to local media.
“We will record statements from the husband and wife today,” Chief Commissioner Azam Baki confirmed, as quoted by a Malaysiakini report.
The raid came amid public outcry linked to the RM43.9 million (US$10.1 million) of investment loss involving public funds by Khazanah and Permodalan Nasional Berhad (PNB), two government-linked firms which invested RM27 million and RM20 million respectively into the fashion e-commerce platform in 2018.
This is despite the company already recording losses for five years consecutively from 2012 to 2017.
In a video of the raid posted on Monday on MACC’s official TikTok account, many netizens expressed hopes that it was “not just a gimmick” and that investigations are conducted “transparently although (the case) involved high-profile individuals”.
In the video, which has garnered over 373,000 views and 866 comments as of 6 pm on Tuesday, an MACC spokesperson explained that the raid was to conduct investigations on Khazanah and PNB’s investment loss.
“This investigation is important as it is of public interest … A total of four locations were raided simultaneously,” the spokesperson added in the video.
The anti-graft busters also confirmed that the case is being investigated under Section 18 of the MACC Act in 2009 which deals with the submission of false claims that can carry a maximum prison sentence of 20 years and a fine of RM10,000 or five times the value of the false claims, whichever is higher upon conviction.
“(I) hope this is not just a gimmick,” said X user @sakura_csgppkls on Tuesday.
The 58-second video posted on TikTok shows MACC’s officers searching through the office and the blurred faces of Ms Vivy and Mr Fadzarudin who are being interrogated.
Both founders resigned from the company on Friday.
“This looks staged though, to show that MACC is actually doing work,” said another X user “Marry Ann”.
“Good job MACC and Madani (unity) government, we support,” said TikTok user Mr Rousley M Deen.
“Keep updating us people, MACC. We want to know every single detail,” another netizen Ms Hazwani Baharum commented.
“Hopefully the investigation will be transparent enough although it involves high-profile individuals. Most entrepreneurs had to get loans, fork out capital for their businesses. Money doesn’t come easy for us ordinary people. May justice be served,” netizen Ms Ida Rafidah commented on an Instagram post by local news channel Astro Awani on Saturday.
Mr Azam confirmed on Saturday through a media statement that investigations are ongoing.
“SPRM would like to give the assurance that a thorough probe will be conducted, fairly and professionally … The public is urged to avoid speculation on those involved,” read the statement, using the Malay acronym for MACC.
Mr Azam also noted that MACC had recorded statements from four officials linked to Khazanah, PNB and the Ministry of Finance.
Some netizens have also raised questions on why a huge sum of investment was made although FashionValet was already recording losses, calling for thorough investigations on state-investment firm Khazanah as well as PNB who approved the investment.
Local media reported on Monday that the company’s financial account filings with the Companies Commission of Malaysia (SSM) showed that it had consistently recorded losses from RM166,793 in 2012 to RM10.7 million in 2017, even before Khazanah and PNB’s investment in the company in 2018.
“This warrants a serious and thorough audit. Why invest in a non-profitable company, wouldn’t it raise a red flag? Why wait until the loss escalates to tens of millions (of ringgit),” said Facebook user Ms Mariam Lim on Monday.
“Those decision-makers in Khazanah and PNB must be investigated … MACC must investigate without fear or fervour,” said another Facebook user Mr Choon Hock Tay.
Ms Vivy’s lavish lifestyle also came under public scrutiny, with netizens noting that pictures of her luxury bags and shoes on display have since been deleted from her social media.
“People are mad at Vivy because she flaunts her wealth everywhere, even when funds from Khazanah and PNB are mismanaged,” said another X user.
“FV (FashionValet) needs to prove that funds from Khazanah and PNB are not used to purchase (Ms) Vivy’s personal items,” said netizen Zaki Talib on Tuesday.
On Friday, both Ms Vivy and her husband Fadzarudin announced their resignations from their respective roles on Instagram, following the outrage.
“We take full responsibility for the failure of the investment … we are disappointed in ourselves and regretful that it has come to this … we are very sorry for the controversy this has caused Khazanah and PNB,” read the statement.
Ms Vivy was the company’s creative director while her husband held the position of chief executive officer.
Meanwhile, FashionValet’s director Aireen Omar, has come forward in a podcast released on Friday, rejecting allegations of fraud and abuse and even asked netizens to “have a life”.
“No such thing as scandal or fraud or syphoning of money. Not at all! I mean, I sit on the board and look at the numbers and definitely, there is no such thing,” she told the hosts of the “Apa Cerita Podcast”.
“Maybe they (netizens) should have a life … It is a natural thing that happens in any business. There will be ups and downs, right,” said Ms Aireen, who is also the president of Capital A, the parent company of AirAsia.
Prior to the FashionValet probe, MACC had also posted videos of its other raids on its official TikTok page.
Most recently, on Sep 18, a video was uploaded showing its officers seizing cash of up to RM1.4 million linked to a “counter-setting syndicate” – where foreigners were allowed to enter the country without proper documentation.
The raid took place at the homes of immigration officers’ in Pahang and Melaka.
Although the case was not as high profile, the video garnered over 640,000 views with most of the comments praising Mr Azam, who was seen in the video.
“The best,” TikTok user @munusam.kasam commented on Sep 18.
In October, MACC seized a total of three safe houses, including an office and a condominium unit in Kuala Lumpur, said to be linked to a prominent politician involved in a corruption probe. The case involved Menteri Besar Selangor Incorporated (MBI) – a body established to administer assets and investments of the state government.
In July, the anti-graft busters also raided the Human Resource Development Corporation office, an agency in charge of reskilling workers, amid scrutiny over allegations of mismanagement and corruption.
The officers were said to have spent six hours in the building, collecting documents related to the allegations.
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