FashionValet issue: 'Resigning not a responsible move; it's running away'
There were two key issues at the heart of the debate: how FashionValet was able to easily secure funding from GLICs and how the entities involved made investments yet suffered losses amounting to millions, acting as if nothing had happened.
SHAH ALAM - The decision by renowned fashion entrepreneur Datin Vivy Yusof and her husband Datuk Fadzarudin Shah Anuar to resign as co-founders of Fashion Valet Sdn Bhd (FashionValet) is seen as an irresponsible move, instead appearing as an attempt to ‘run away’ from their responsibilities.
Former Deputy Public Prosecutor Liyana Marzuki said that the actions taken by both individuals were indeed predictable from the start.
According to her, there were two key issues at the heart of the debate: how FashionValet was able to easily secure funding from government-linked investment companies (GLICs) and how the entities involved made investments yet suffered losses amounting to millions, acting as if nothing had happened.
“For the record, Grab incurred losses while investors were investing and even before it was listed... But investors held on because there was potential. Now it has become a Singapore unicorn... A missed opportunity.
“To me, losses are not the main issue because if there is potential and the value is increasing, investors will stay. It usually comes down to who dominates; the available funds are typically for the political elite.
“FashionValet received RM1 million from MyEG Services Bhd (MyEG), RM27 million from Khazanah Nasional Berhad (Khazanah), and RM20 million from Permodalan Nasional Berhad (PNB), and it’s still not enough. Is there no protection for public investment funds? Can they really invest 'one-to-one' like that?” she said in a post on X on Saturday.
She made this statement in response to Vivy’s post on Friday, where she finally spoke out and apologised following news of the losses reported by Khazanah and PNB.
The Finance Ministry (MoF), in a written response dated Oct 28 published on the Parliament website on Tuesday, said that Khazanah and PNB only received RM3.1 million from the sale of shares in FashionValet.
She explained that the sale was a responsible exit by Khazanah and PNB from FashionValet to a strategic investor, as both entities had invested a total of RM47 million for their minority stakes in 2018.
Liyana, who is also a political activist, questioned whether the function of GLICs is merely to ensure that the 'T10' Malay elite remained wealthy while the losses are borne by the ordinary people.
“They have already spent money early on... not panicking later. Seven generations could be set for life, but we struggle every day.
“The irony of this case is that the question in Parliament was raised by a DAP representative... Expecting the opposition to provide checks and balances, they are more frantic with words than actions,” she added.
