KWAP's eFishery investment: Anwar admits failure stemmed from following int'l trends

PARLIAMENT | Prime Minister Anwar Ibrahim has admitted weaknesses in the due diligence process surrounding the Retirement Fund (Incorporated) (KWAP) investment in Indonesian aquaculture technology start-up eFishery.

Anwar said the investment team had relied on the participation of major international players, including institutions from Japan and Europe, in its assessment...

PARLIAMENT | Prime Minister Anwar Ibrahim has admitted weaknesses in the due diligence process surrounding the Retirement Fund (Incorporated) (KWAP) investment in Indonesian aquaculture technology start-up eFishery.

Anwar said the investment team had relied on the participation of major international players, including institutions from Japan and Europe, in its assessment.

"In the recent investment into Jakarta, there was a major weakness as they (KWAP's investment committee) followed international trends," he told the Dewan Rakyat during Minister's Question Time this morning.

"In this case, they had relied on (Japanese multinational investment holding company) SoftBank, feeling that it was unlikely that SoftBank would invest so carelessly," he added.

He was responding to Ronald Kiandee (PN-Beluran), who asked what steps the government had taken to establish accountability for the losses and strengthen due diligence procedures to ensure public funds were invested prudently.

Anwar acknowledged the need for stricter safeguards, adding that the government would tighten investment rules and scrutiny.

He further noted that KWAP had continued to record strong overall returns and had recently achieved record performance.

In July 2023, KWAP invested RM163.4 million into eFishery, which ended in a loss of nearly RM200 million. The company was later embroiled in a financial fraud scandal involving the manipulation of its financial reporting.

READ MORE: KINIGUIDE | Hook, line, and sinker: How KWAP's eFishery gamble unravelled

Felda probe

Anwar also disclosed that earlier investigation papers concerning alleged misconduct at Felda had been opened, but were rejected or filed away.

This was after PAS information chief Ahmad Fadhli Shaari (PN-Pasir Mas) asked for an update on investigations into alleged misappropriation, corruption, and abuse of power involving Felda and its subsidiary, Felda Investment Corporation.

Fadhli questioned why investigations into transactions dating from 2010 to 2020 had only recently led to prosecutions.

He also cited similar questions over the timing of prosecutions involving Tabung Haji.

"So why is it only now that these charges are being brought forth? This creates the perception that these prosecutions are being pursued solely because of a rift among the parties within the government," Fadhli said.

READ MORE: Wanita Umno delegate: Don't tarnish party's image with 'orange suit, handcuffs'

The federal government is made up of rivals-turned-allies-turned-rivals-again BN and Pakatan Harapan, whose relationship has deteriorated after Johor BN decided to contest the state election on its own.

BN is mulling cooperation with opposition bloc Perikatan Nasional as part of efforts to build a united Malay-Muslim political front.

However, Anwar said one investigation paper was opened in 2017, four in 2019, and another in 2020, with more serious action only beginning after a special task force was established following 2022.

READ MORE: 'Sakau' or not? Five key takeaways from Tabung Haji RCI

He reiterated that Tabung Haji itself had requested for the government to delay releasing the royal commission of inquiry report to give the institution time to recover.

"At the time, I said it was fine for the investigation to proceed even if it were delayed for two years - that posed no issue - and now, it is continuing," he added.

In addition, the prime minister announced that the government is preparing a State-Owned Enterprises Act to tighten governance and oversight of government-owned entities, with the aim of passing the bill this year.