eFishery Scandal Causes Losses for Malaysian Civil Servants' Pension Fund
The massive fraud scandal at eFishery has drawn the attention of Malaysian Prime Minister Anwar Ibrahim. Anwar stated that Malaysia’s civil service pension fund suffered significant losses due to the case. The scandal first came to light following a whistleblower report. An initial investigation by FTI Consulting found indications of nearly USD 600 million in revenue falsification over a nine-month period ending in September 2024. On 15 December 2024, Singapore-based news outlet DealStreetAsia published a report on the alleged fraud at the Indonesian aquaculture unicorn, which had recently secured USD 200 million in Series D funding. Indonesia’s Criminal Investigation Agency (Bareskrim Polri) has been investigating the alleged financial statement manipulation since early 2024. Internal suspicions at eFishery pointed to the former CEO and Chief Financial Officer as the perpetrators of the fraud.
The Bandung District Court panel of judges sentenced eFishery CEO Gibran Huzaifah to nine years in prison. He was found guilty of manipulating financial statements and money laundering. Gibran was tried alongside co-defendants Angga Hadrian Raditya and Andri Yadi. The court also imposed a fine of Rp 1 billion, with a subsidiary sentence of 190 days in custody. However, the Bandung High Court later reduced Gibran Huzaifah’s sentence to six years in prison. The appellate court increased the fine to Rp 2 billion, with a provision that if the fine remains unpaid one month after the ruling becomes legally binding, the defendant’s assets will be seized and auctioned, or he will serve an additional 320 days in prison. The court also ordered the seizure of several of Gibran’s assets, including a house in Bandung, to compensate victims.
Malaysian Prime Minister Anwar Ibrahim highlighted the case in parliament, stating that the Retirement Fund (Incorporated) (KWAP) lost nearly RM200 million (approximately Rp 875.9 billion) due to the fraud. He explained that KWAP was deceived into investing in eFishery based on manipulated financial reports, a deception that also affected other international institutional investors. Anwar noted that the investment decision had undergone an evaluation and governance process based on information available at the time, including verification by an internationally recognised certified auditor. The investor consortium, including KWAP, also conducted independent due diligence. He emphasised that other prominent institutional investors and technology funds, such as Temasek, SoftBank, 42XFund, and Northstar, also invested in the startup. In 2023, eFishery reportedly secured USD 200 million in Series D funding, of which USD 47.7 million came from KWAP. Responding to a parliamentary question on accountability, Anwar said the investor consortium has initiated legal action and efforts to recover the funds. KWAP has also conducted a comprehensive review of its evaluation, approval, and monitoring processes, and has taken follow-up actions in accordance with institutional governance and accountability principles.