5-12-2024 (KUALA LUMPUR) In a stunning development that has sent shockwaves through Malaysia’s business community, the founders of prominent fashion e-commerce platform FashionValet have been charged with criminal breach of trust involving RM8 million ($1.8 million) of state investment funds.
Fashion mogul Vivy Sofinas Yusof, 36, and her husband Fadzarudin Shah Anuar appeared before the Kuala Lumpur Sessions Court on Thursday, where they entered not guilty pleas to charges that could see them face up to two decades behind bars.
The couple stands accused of misappropriating investments made by sovereign wealth fund Khazanah Nasional Berhad and state investment firm Permodalan Nasional Berhad (PNB). Prosecutors allege they transferred RM8 million from FashionValet to 30 Maple Sdn Bhd, another company under their ownership, without proper board approval.
Judge Rosli Ahmad granted bail at RM100,000 each but imposed strict conditions, including monthly check-ins with anti-corruption officials and the surrender of their passports. The prosecution, led by Deputy Public Prosecutor Shaharuddin Wan Ladin, had initially sought higher bail, citing flight risk concerns.
The charges come in the wake of a broader scandal involving the company’s performance. Both state investors reportedly sold their stakes in FashionValet last year for just RM3.1 million, marking a staggering loss on their initial RM47 million investment made in 2018.
Prime Minister Anwar Ibrahim has ordered a comprehensive audit of Khazanah’s involvement, while the Malaysian Anti-Corruption Commission (MACC) has already seized assets including luxury handbags and watches valued at approximately RM200,000 during raids on the couple’s residence.
The case has particularly impacted Vivy, once celebrated as a pioneer in Malaysia’s digital fashion industry and featured on Forbes’ 30 under 30 Asia list. The social media influencer, who boasts 1.8 million followers, has faced intense public scrutiny over her luxurious lifestyle amidst the company’s financial troubles.
Both accused have stepped down from their positions at FashionValet, which they founded in 2010. In a public statement, they expressed regret over the investment losses and apologised for the controversy.
The case, which has been adjourned until 22 January, marks a dramatic fall from grace for what was once considered a beacon of Malaysia’s digital economy. If convicted under Section 409 of the Penal Code, the couple faces a minimum two-year prison term, with possibilities of caning and additional fines.
The scandal has raised serious questions about corporate governance and state investment oversight in Malaysia’s startup ecosystem. Meanwhile, FashionValet, which reportedly offers over 400 brands and 15,000 products, faces an uncertain future as its founders prepare for what could be a lengthy legal battle.
