KUALA LUMPUR, March 5 — News portal Malaysiakini said it has lost RM3 million after funds were allegedly diverted by former employees into suspected unlicensed investment schemes, its board of directors announced today.
The board also said a police report was filed following the discovery.
In a statement, the board of Mkini Group Sdn Bhd said the diversion occurred between March 2023 and March 2024, and went undetected because audited company accounts for that period stated the funds were being held in “fixed deposits placed with a licensed bank.”
The board confirmed that it had conducted internal investigations assisted by independent legal counsel and financial consultants before lodging the police report.
Co-founders Steven Gan and Premesh Chandran, who now serve as non-executive directors, expressed their shock over the matter.
“We are extremely devastated by these unauthorised actions,” said Gan, the portal’s former editor-in-chief.
“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.”
Premesh, the company’s former chief executive officer, said that while the loss has made a “dent” on the company’s finances, Malaysiakini’s core operations remain unaffected.
The board confirmed that the management and staff of Malaysiakini had been informed of the situation.
It added that active remedial measures are underway and it will provide further updates as the investigation and potential litigation proceed.
