KUALA LUMPUR: Permodalan Nasional Bhd (PNB) and Khazanah Nasional should explain their RM43.9 million losses after selling their stake in the e-commerce platform FashionValet Sdn Bhd (FashionValet) for RM3.1 million.
Communications Minister Fahmi Fadzil said this is because they are dealing with public money.
He nevertheless said that both parties including Fashion Valet should be given some time to prepare a formal response.
"I have yet to receive a full report on what exactly happened. A lot of people have many questions, and I think we should allow the respective parties some time to provide a formal response.
"Since public money is involved, naturally people are asking questions. We are also starting to see content revealing what may have been going on.
"However, to be fair to all parties, I think we should give them some time to explain themselves. In the public interest, I believe they should issue a statement," he told reporters at the Madani Deepavali Open House.
On Oct 29, the Finance Ministry revealed in a written parliamentary reply that Khazanah and PNB lost RM43.9 million from the sale of their minority investments in FashionValet
In 2018, Khazanah invested RM27 million and PNB RM20 million for minority stakes in FashionValet.
The ministry said the Covid-19 pandemic severely impacted Fashion Valet's business, leading to a significant need for new capital to continue operations.
It added that the sale represents a responsible exit for Khazanah and PNB from Fashion Valet to a strategic investor who could continue to assist Fashion Valet in addressing its financing needs holistically and reviving its business in a challenging industry environment.
Last month, Khazanah said its RM27 million investment in FashionValet (FV) in 2018 reflects its commitment to support local founders and startup ecosystem.
Meanwhile, PNB's investment was to support the rapidly growing Bumiputera digital retail company to become a regional retail platform for Malaysian brands.
The investments from Khazanah and PNB were channeled into Fashion Valet to support the company's growth plans.