Malaysian Anti-Corruption Commission Continues Probe Into KWAP eFishery Stake
The Malaysian Anti-Corruption Commission is still investigating Retirement Fund Incorporated’s investment in Indonesian aquaculture technology company eFishery, the Ministry of Finance stated in a written reply on the Parliament website. The inquiry centers on an equity stake acquired in July 2023, which later resulted in substantial financial losses for the public fund.
The ongoing investigation has not uncovered any evidence of criminal wrongdoing involving corruption or misappropriation, according to the Ministry of Finance. The ministry issued the update in response to an inquiry from Tuan Kalam Salan, the Member of Parliament for Sabak Bernam.
Due Diligence Failures and International Reliance
Prime Minister Anwar Ibrahim acknowledged weaknesses in the due diligence process during Prime Minister’s Question Time in the Dewan Rakyat on Oct 20, 2026. The Prime Minister stated that the investment team relied too heavily on participation from major international players and followed global trends rather than applying sufficient independent scrutiny.
The initial investment amounted to RM163.4 million, securing a 2.51 per cent equity stake for KWAP. The Ministry of Finance stated that earlier media estimates of a RM200 million loss reflected the broader financial toll of the venture. Before approval, the proposal underwent internal evaluations, independent due diligence, and reviews by a qualified international auditor based on available data at the time, the Ministry of Finance stated.
Financial Manipulation and Misrepresentation
The Indonesian start-up was subsequently found to have engaged in financial manipulation and misrepresentation of facts in its financial reports. The misconduct affected several major global institutional investors who held the majority of the company’s shares, leaving KWAP as a minority shareholder alongside institutional backers from Japan and Europe.
Datuk Seri Dr Ronald Kiandee, the Member of Parliament for Beluran, questioned the government regarding accountability for the losses. In response, the Prime Minister announced that the government intends to tighten regulations, investment rules, and scrutiny procedures to safeguard public funds entrusted to government-linked entities.
Investment Recovery and Institutional Cooperation
KWAP has cooperated with relevant authorities and the investor consortium to take appropriate action against those responsible for the financial irregularities. Efforts are continuing through appropriate channels to maximize the recovery of the investment value, the Ministry of Finance confirmed.
Despite the setback in Jakarta, the Ministry of Finance and the Prime Minister emphasized that KWAP has continued to record strong overall financial returns and recently achieved record performance across its broader portfolio. The government plans to introduce stricter oversight legislation for government-owned entities before the end of the year.
Frequently Asked Questions About the KWAP eFishery Investigation
What was the exact financial loss suffered by KWAP in the eFishery investment?
KWAP invested RM163.4 million to acquire a 2.51 per cent equity stake in July 2023. Total financial impacts associated with the fallout reached nearly RM200 million.
Has the MACC found any evidence of criminal corruption in the deal?
No. According to the Ministry of Finance, the ongoing MACC investigation has not uncovered any evidence of criminal wrongdoing, corruption, or misappropriation.
Why did the initial due diligence fail to catch the financial irregularities?
Prime Minister Anwar Ibrahim stated that the investment committee relied too heavily on the participation of major international institutional investors from Japan and Europe, leading to weaknesses in the vetting process before eFishery’s financial manipulation was uncovered.
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