Fashion Valet founders on trial for RM8 million breach of trust, court reviews RM40 million investment
The Kuala Lumpur Sessions Court heard that Fashion Valet received close to RM40 million from Khazanah and PNB in 2018, while its founders face criminal breach of trust charges over RM8 million.
In a Kuala Lumpur Sessions Court hearing, evidence was presented that Fashion Valet Sdn Bhd received almost RM40 million in investment from Khazanah Nasional and Permodalan Nasional Berhad throughout 2018, deposited in four separate transactions. The bank’s records also show a substantial bulk payment made in August and cash withdrawals totalling RM11 million from the founders’ personal accounts in early September. The founders, Vivy Sofinas Yusof and Fadzarudin Shah Anuar, are accused of criminal breach of trust for allegedly authorising payments of RM8 million to a third party without board consent.
They face potential imprisonment, whipping and fines under Sections 409 and 403 of the Penal Code. Cross-examination highlighted that the bulk payment could have covered operational expenses, but the prosecution maintains the funds were misappropriated. The judge has scheduled the next hearing for early November.
Why it matters
The case highlights potential misuse of state-linked investment funds and raises questions about corporate governance in Malaysia.
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