Malaysia Debt Ventures sees red due to ‘suspicious transactions’

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Malaysia Debt Ventures (MDV) sunk into the red in 2022 due to “suspicious transactions” from an unnamed portfolio company that failed to repay its debt.

The state-owned tech financier told the Malaysian Auditor-General last week that “Company 10” allegedly channelled the loan it received from MDV to another bank account instead of the project’s account per its contract, the agency said.

MDV’s response came after the country’s national auditor found that the agency had chalked up a pre-tax loss of 18.6 million ringgit (US$3.97 million) to its failure to recover a loan made to Company 10.

MDV told the Auditor-General that it had filed a police report and commenced legal proceedings against the company for failing to repay its arrears.

Owned by the Malaysian finance ministry, MDV’s mandate is to provide financing facilities to tech-related companies, projects, and contracts.

The agency has been profitable since 2019, but the Auditor-general flagged that a year-on-year decline in operational income. MDV’s operational income comes from financing as well as interest on loans, deposits, and placements, among others.

MDV told the national auditor that it planned to diversify investments in 2024, including taking up equity ownership in tech companies as well as investing in peer-to-peer platforms and initial exchange offerings.

Currency converted from Malaysian ringgit to US dollar: US$1 = 4.68 ringgit.