Court hears RM40m in Khazanah, PNB investments paid into Fashion Valet accounts

Fashion Valet Sdn Bhd received nearly RM40 million in investments from Khazanah Nasional Bhd and Permodalan Nasional Bhd (PNB) in 2018, according to the court. The company's director, Tay Lay Hong, testified that Fashion Valet received RM7.848 million and RM11.742 million from Khazanah, respectively, on March 23 and 26. PNB contributed RM11.9535 million on June 4 and an additional RM8.364 million on December 20, 2018.

During the trial of a RM8 million fraud charge involving Fashion Valet founders Vivy Yusof and her husband, Fadzarudin Shah Anuar, Tay confirmed that RM11 million was withdrawn from the company's account and paid to an unidentified recipient on August 21. Tay stated that RM5 million was credited to Vivy's Public Bank account on September 3 with a reference to "CIMB Rentas."

Another RM5 million was credited to Fadzarudin's account the following day with the label "interim dividend." Both transactions originated from 30 Maple Sdn Bhd. Tay mentioned on September 5 that Vivy and Fadzarudin each withdrew RM5.5 million from their Public Bank accounts at the bank counter. When cross-examined, defense attorney M Athimulan suggested that it was common for large corporate entities like Fashion Valet to use wire transfers to meet financial obligations, including paying salaries, fuel costs, and rent.

Tay agreed. Athimulan questioned whether the RM11 million payment labeled as a wire transfer meant that the money was moved into a specific personal account. Tay affirmed that he did not see any money transfer fraud in the wire transfer to a shell company or a non-existent personal account. Vivy and Fadzarudin, both 38 years old, were charged on January 5, 2024, with a charge of corporate fraud involving Khazanah and PNB investments when they became directors of Fashion Valet.

They are accused of authorizing a RM8 million payment from Fashion Valet's corporate bank account to 30 Maple Sdn Bhd without board approval on August 21, 2018, at the Public Bank Bukit Damansara branch. The charges under Section 409 of the Penal Code carry a maximum sentence of 20 years in prison, fine, and if guilty of negligence.

Both Vivy and Fadzarudin pleaded not guilty to the alternative charge of fraudulently using Khazanah and PNB investments totaling RM8 million in the case and at the same time. The trial of Vivy and Fadzarudin before Judge Rosli Ahmad continues on November 3.