KUALA LUMPUR (Dec 5): Fashion Valet Sdn Bhd co-founders Datuk Fadzarudin Shah Anuar and Datin Vivy Sofinas Yusof claimed trial at the Sessions Court here on Thursday to a charge of criminal breach of trust (CBT) involving RM8 million of funds from Khazanah Nasional Bhd and asset manager Permodalan Nasional Bhd (PNB).
The charge read that the husband and wife, who were agents entrusted with funds from Khazanah and PNB, had committed CBT by transferring RM8 million of the investment funds, from FashionValet's account to 30 Maple Sdn Bhd, without the approval of the FashionValet board of directors.
The offence was allegedly committed in August 2018.
30 Maple is the firm that operates the luxury headscarf brand Duck. FashionValet is currently the sole shareholder of 30 Maple, company checks showed. However, FashionValet emerged as a shareholder only on Dec 31, 2018, after taking over the entire 100% stake from the couple, who each held a 50% stake then.
The charge was framed under Section 409 of the Penal Code, which carries a punishment of imprisonment between two and 20 years with whipping, and potentially a fine.
When the sole charge was read against the couple who are both 36 years old, they said they understood the charge and pleaded not guilty.
Sessions Court judge Rosli Ahmad set bail at RM100,000 each, with the standard additional conditions of impounding their passports and for them to report to Malaysian Anti-Corruption Commission (MACC) every month.
The prosecution was led by Datuk Wan Shaharuddin Wan Ladin, while the husband and wife were represented by Ashok Athimulan.
Earlier, Wan Shaharuddin pointed out that the prosecution could object to bail as the offence was non-bailable. However, taking into consideration that the couple had cooperated with the authorities, he asked for the court to impose bail around RM100,000 to RM200,000, with additional bail terms.
"This is a serious offence, and there is a flight risk. To ensure fairness to all parties, their passports have to be impounded, and they can make an application to the court whenever [they need to travel]," Wan Shaharuddin said.
Ashok, in response, argued that his clients are not a flight risk, highlighting their cooperation with the MACC.
"The MACC had issued nine notices to come to the MACC, and they adhered to all the notices, even during weekends," he said.
He added that the couple's family, including four children, and business are based in Kuala Lumpur, hence they would not abscond the country. A high bail sum would be akin to a punishment, Ashok argued further.
"They have pleaded not guilty, and they have come to court to clear their name. They are experiencing financial impediments, and their assets have been frozen," he said.
The case will be next mentioned on Jan 22, 2025.
FashionValet, an e-commerce platform whose shareholders at one point included Khazanah and PNB, came under the spotlight after the two state-linked funds were revealed to have exited the company at a loss of a combined RM43.9 million in 2023.
The matter will also be investigated by the Public Accounts Committee, with proceedings to begin next week.
Last month, Vivy stepped down as FashionValet's CEO, while Fadzarudin resigned as an executive director, with the duo saying they took full responsibility for the reported loss.
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