Malaysia said alleged fraud at Indonesian startup eFishery cost its civil servants’ pension fund up to US$45.7 million. Prime Minister Anwar Ibrahim described the scandal as “premeditated fraud” involving manipulated company financial statements.
The pension fund, Kumpulan Wang Persaraan (KWAP), relied on audited statements and independent due diligence, Anwar said. The statement appeared in a written parliamentary reply, according to Indonesia Business Post.
The response followed questions from Subang MP Wong Chen about the accountability of KWAP’s board and senior management. Anwar also serves as Malaysia’s Finance Minister.
Indonesian Startup eFishery Drew Pension-Fund Investment
Parliamentary records put KWAP’s investment between RM163.4 million and RM194.35 million. The investment occurred during eFishery’s Series D fundraising round in July 2023, Indonesia Business Post reported.
KWAP separately confirmed that it invested RM163.4 million, according to the report’s account of Malay Mail coverage. It said it was pursuing all available legal avenues to recover the pension fund’s investment.
Anwar said the accounting manipulation deceived other institutional investors and venture capital firms despite rigorous screening. Investors reportedly affected included Singapore’s Temasek, Japan’s SoftBank, 42XFund and Northstar.
The report attributed Anwar’s parliamentary remarks to The Edge Malaysia. Anwar said eFishery management manipulated the company’s financial statements, while the fund’s investment had undergone independent review.
Revenue Allegations And Criminal Sentences
Indonesian startup eFishery raised US$200 million in its Series D funding round in 2023. The report described the aquaculture business as having once been regarded among Southeast Asia’s leading agritech unicorns.
Co-founder and former chief executive Gibran Huzaifah was suspended in 2024 over revenue-manipulation allegations. Gibran later acknowledged that financial statements had been manipulated but denied embezzling company money for personal gain.
Prosecutors alleged that false financial reports caused internal losses exceeding Rp69 billion. They also alleged investors were misled through fabricated financial data valued at around US$300 million.
The Bandung District Court later convicted Gibran of embezzlement and money laundering, according to the report. The court sentenced Gibran to nine years in prison and imposed a Rp1 billion fine.
Former Vice President of Finance and Investor Relations Angga Hadrian Raditya also received nine years in prison and a Rp1 billion fine. Former Vice President of Artificial Intelligence and IoT Andri Yadi received seven years and a Rp1 billion fine.
Related Grit Daily coverage includes research on startup fraud and the Joonko securities fraud plea. Its coverage of private startup investment addresses a separate financing story.
Investors Pursued Recovery And Governance Reviews
KWAP joined the investor consortium in pursuing legal action after the alleged fraud was discovered. The pension fund also reviewed its governance framework and strengthened internal investment controls, Anwar said.
“Following the discovery, the investor consortium, including KWAP, has taken decisive measures, including legal action, recovery efforts, governance reviews and strengthened internal controls,” Anwar said.
KWAP’s separate statement said it was pursuing available legal avenues to recover its investment. The fund’s response paired recovery efforts with its review of investment oversight.
