I remember when my client’s well-established, cash-rich company was acquired by Permodalan Nasional Berhad (PNB) ten years ago.

I knew our client as a company with strong fundamentals and steady performance, which naturally made them an attractive acquisition.

So I have first hand experience dealing with PNB.

But now, watching the ongoing saga around PNB’s investment in FashionValet – particularly with MACC stepping in.

find myself questioning PNB’s approach. The risks involved in this investment, frankly, raise some tough questions.

First, why did PNB, with its reputation for corporate discipline, 𝗶𝗻𝘃𝗲𝘀𝘁 𝗶𝗻 𝗮 𝗹𝗼𝘀𝘀-𝗺𝗮𝗸𝗶𝗻𝗴 “𝘀𝘁𝗮𝗿𝘁-𝘂𝗽” like FashionValet? There was no profit guarantee secured, which is surprising given the financial risk.

Second, what made PNB, known for its no-nonsense standards, proceed with such a deal 𝘄𝗶𝘁𝗵𝗼𝘂𝘁 𝗲𝗻𝘀𝘂𝗿𝗶𝗻𝗴 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝘀𝗮𝗳𝗲𝗴𝘂𝗮𝗿𝗱𝘀?

And finally, where was 𝘁𝗵𝗲 𝗴𝗼𝘃𝗲𝗿𝗻𝗮𝗻𝗰𝗲? It seems like proper oversight wasn’t prioritized.

I still remember how, as auditor and tax agent, we navigated rounds of endless questions from due diligence auditors and lawyers. It was a month of intense queries and detailed reviews, making sure every box was ticked.

𝗣𝗡𝗕 𝗺𝗮𝘆 𝘃𝗮𝗹𝘂𝗲 𝗵𝗶𝗴𝗵-𝗴𝗿𝗼𝘄𝘁𝗵 𝘀𝗲𝗰𝘁𝗼𝗿𝘀, which likely played a part here. But growth alone shouldn’t be the main criterion.

𝗦𝘁𝗿𝗼𝗻𝗴 𝗴𝗼𝘃𝗲𝗿𝗻𝗮𝗻𝗰𝗲 𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲𝘀 are essential, and perhaps if the due diligence had been more robust in addressing these issues, things might have turned out differently.

So, why didn’t PNB’s due diligence catch these gaps?

Could the public include me ever see the investment memo or committee meeting minutes? Transparency matters, especially for a government-linked body entrusted with public funds.

𝗣𝗦 : 𝗜 𝗮𝗺 𝗻𝗼𝘁 𝗮𝗻 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗲𝘅𝗽𝗲𝗿𝘁 𝗼𝗿 𝗮 𝗳𝘂𝗻𝗱 𝗺𝗮𝗻𝗮𝗴𝗲𝗿; 𝗺𝘆 𝗽𝗲𝗿𝘀𝗽𝗲𝗰𝘁𝗶𝘃𝗲 𝗵𝗲𝗿𝗲 𝗶𝘀 𝗽𝘂𝗿𝗲𝗹𝘆 𝗳𝗿𝗼𝗺 𝘁𝗵𝗲 𝗿𝗼𝗹𝗲 𝗼𝗳 𝗮𝗻 𝗮𝘂𝗱𝗶𝘁𝗼𝗿 𝘄𝗵𝗼 𝗶𝘀 𝗺𝗼𝗿𝗲 𝗰𝗼𝗻𝘀𝗲𝗿𝘃𝗮𝘁𝗶𝘃𝗲 𝗮𝗻𝗱 𝗽𝗿𝘂𝗱𝗲𝗻𝘁.