By P PREM KUMAR / Pic By BERNAMA

Khazanah Nasional Bhd has lost millions due to “bad investments”, including investing in an online lingerie company which saw losses of US$20 million (RM81.27 million), said Datuk Seri Mohamed Azmin Ali (picture).

The economic affairs minister said the loss due to the lingerie business was the smallest amount written off, among other failed ventures.

“They were selling lingeries and bras, and undergarments. The investment had to be written off,” he told the Dewan Rakyat yesterday.

It was reported in September 2015 that Khazanah had invested in a leading Indian online lingerie retailer Zivame, which secured 2.5 billion rupees (RM148.61 million) in its Series C round of funding. According to India Times, existing investors Unilazer Ventures Pte Ltd, IDG Ventures and Kalaari Capital also participated.

“While Khazanah has invested over US$1 billion across various sectors in India, this is its first e-commerce bet,” the newspaper reported on Sept 4, 2015. Zivame was founded by Richa Kar in 2011.

The online retailer firm offers products ranging from everyday lingerie essentials to shapewear, comfortwear, nightwear and activewear.

Azmin also pointed out another investment which had to be written off. “There was another deal to take over a private bank. The write-off was RM3 billion.”

Azmin, who was newly appointed as one of the sovereign wealth fund’s directors, reiterated that the government wants Khazanah to be “back on track” so that its strategic assets will be managed properly.

He said this in response to a query from MP Datuk Seri Mohd Najib Razak (BN-Pekan), who wanted an answer on how Khazanah was accused of deviating from its original purpose when it had increased its wealth by RM33 billion to RM134.5 billion in the last 10 years.

Prime Minister Tun Dr Mahathir Mohamad had recently criticised Khazanah for deviating from its initial purpose of helping Bumiputeras. Subsequently, all of its board members tendered their resignations to pave the way for the fund’s revamp.

The government on Monday returned Dr Mahathir as the chairman. Besides Azmin, the other new board members are former Petroliam Nasional Bhd president and CEO Tan

Sri Mohd Hassan Marican, former Bank Negara Malaysia deputy governor Dr Sukhdave Singh and investment banker Goh Ching Yin.

Rumours are also swirling about the position of Khazanah MD Tan Sri Azman Mohktar. The government said on Monday that the MD at the state-owned fund will be announced at a later date.

Meanwhile, Azmin said development projects which have been issued letters of acceptance (LoAs) by the government will continue.

He said the Cabinet has decided to implement projects which have been awarded nationwide, with priority on people-centric developments.

The minister said the government is aware that mass deferment or cancellation of such projects can directly impact the country’s economic growth.

“We are aware that all developments cannot be cancelled because it will affect the country’s economic growth, that is why the Cabinet has decided to allow projects which have been issued LoAs,” he said, when winding up debates on the royal address.

Azmin said the new government will prioritise inclusivity in ensuring all states in the country are developed.

“There are some projects which are a waste of money and not benefitting the masses. These projects will be reviewed, but the ones with great benefit to the people, we will not stop the development.

“The Pakatan Harapan government also believes in devolution of power, where the states will be given funds directly without any third-party interference.”