The Malaysian Anti-Corruption Commission (MACC) has uncovered a series of questionable financial transactions while examining documents tied to the luxury e-commerce platform Fashion Valet and its subsidiary, 30 Maple. Both companies, co-founded by entrepreneurs Vivy Yusof and Fadzaruddin Shah Anuar, are under investigation following a reported RM43.9 million loss incurred by state-owned investors Khazanah Nasional Bhd and Permodalan Nasional Bhd (PNB).
According to MACC chief commissioner Azam Baki, forensic accountants are currently combing through about 50 to 60 boxes of financial records from Fashion Valet and 30 Maple. The findings will soon be presented to MACC’s investigation division, with investigators focusing on transactions and asset flows from the period 2018-2023 to detect any indicators of corruption or other criminal offenses, such as fraud.
This deepening investigation highlights the risks and challenges associated with government investments in private ventures. Khazanah and PNB together funneled RM47 million into Fashion Valet in 2018, acquiring minority stakes. During that same year, Fashion Valet acquired 30 Maple for RM95 million—a subsidiary managing Vivy’s headscarf brand, Duck. Now, authorities are scrutinizing whether the funds provided by Khazanah and PNB were appropriately allocated or possibly misused.
As part of the ongoing probe, MACC has turned its attention to the high-end lifestyle the co-founders display on social media. Azam noted that Vivy and Fadzaruddin will be required to clarify the origins of various luxury items showcased online, as investigators suspect some of these assets may be linked to the government-backed investments. In addition to financial audits, MACC is investigating if any of these luxury assets were purchased with funds that should have been reinvested into Fashion Valet.
In light of the probe, MACC has taken significant measures, including freezing several personal and company bank accounts owned by Vivy and Fadzaruddin, valued at an estimated RM1.1 million. Additionally, MACC seized luxury goods such as high-end handbags and a watch with a combined worth of around RM200,000. The couple has been summoned by MACC for questioning over three consecutive days as part of the investigation under Section 18 of the MACC Act 2009, which deals with the submission of false claims.
On Monday, MACC officials conducted a series of visits to key offices, including Fashion Valet’s headquarters, the finance ministry, and the offices of Khazanah and PNB, to obtain additional documents that may shed light on the investments. This coordinated effort aims to establish whether the flow of funds was appropriately managed or if there were any instances of misappropriation.
The scrutiny has also extended to the Public Accounts Committee (PAC), which announced its intention to call representatives from both Khazanah and PNB for questioning regarding the substantial losses related to Fashion Valet. This step underscores the high-profile nature of the case, with the PAC expressing concern over the losses incurred by these government-linked investment entities.
In response to the mounting pressure, Vivy Yusof and Fadzaruddin Shah Anuar have announced that they will step down from their management roles at Fashion Valet, citing accountability for the financial losses faced by Khazanah and PNB. Their decision to withdraw from day-to-day operations suggests a willingness to cooperate fully with investigators and acknowledge the severity of the allegations facing their company.
As MACC’s probe advances, the case has raised questions about the accountability of private entities that receive substantial public investments. The involvement of both Khazanah and PNB highlights the need for stringent oversight to safeguard government funds in private ventures. The incident may prompt regulatory bodies to adopt stricter monitoring procedures for state-backed investments to prevent similar cases in the future.
This investigation casts a shadow over Fashion Valet’s financial dealings, raising broader concerns about transparency and corporate responsibility within the business landscape. The high-profile lifestyle of the co-founders and the loss of public funds could lead to reputational damage, not only for the individuals involved but also for the companies associated with them. As Malaysia awaits further findings, the outcome of this case could set new precedents for accountability standards in the private sector, particularly for entities funded by government resources.
Information Source: FMT
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