KUALA LUMPUR (March 5): The management firm of news portal Malaysiakini, Mkini Group Sdn Bhd, has filed a police report after finding that RM3 million from its subsidiaries was diverted to third-party entities suspected of running unlicensed investment schemes.

In a statement posted on its news website, the board said the diversions occurred between March 2023 and March 2024 and were facilitated by former key employees of Malaysiakini.

The irregularities went undetected as the company’s audited accounts for 2023 and 2024 had recorded the funds as fixed deposits with a licensed bank.

The internal probe was conducted with assistance from independent legal counsel and financial consultants. Following the findings, the board filed a police report and briefed Malaysiakini’s management and staff.

Co-founders Steven Gan and Premesh Chandran, both non-executive directors, expressed deep disappointment over the unauthorised actions.

Gan, Malaysiakini’s former editor-in-chief, said: “We are extremely devastated by these unauthorised actions.”

 “To be betrayed by some of our most trusted staff members is a heavy blow. We are determined to recover the funds and tighten oversight to prevent any recurrence,” he said.

Former chief executive officer Premesh added that while the diversion had affected the company’s reserves, Malaysiakini’s core operations remain intact.

 “The funds were built up by Malaysiakini over the last decade and formed a significant part of our reserves. Diverting these funds — perpetrated by former colleagues — severely damages our resilience, and distracts from our mission to speak truth to power,” he added.

The board said further updates will be provided as investigations and litigation progress.