Mkini Group Lodges Police Report Over RM3 Mln Diversion

KUALA LUMPUR, March 5 (Bernama) -- The Board of Directors of Mkini Group Sdn Bhd has filed a report with the police following internal investigations that determined RM3 million from its subsidiaries were diverted to third-party entities believed to be operating unlicensed investment schemes.

In a statement posted on the news portal, the board said the diversion of funds happened between March 2023 and March 2024 and was enabled by former key employees of Malaysiakini.

According to the statement, the diversion went undetected as the audited company accounts for 2023 and 2024 stated the funds were in "fixed deposits placed with a licensed bank."

The board, which conducted the investigations with the assistance of independent legal counsel and financial consultants, said its representatives had lodged the police report and that Malaysiakini management and staff had been informed of the transgressions, with active remedial measures currently underway.

Co-founders Steven Gan and Premesh Chandran, who are non-executive directors of the Mkini Group, expressed their deepest disappointment and regret.

"We are extremely devastated by these unauthorised actions", said Gan, who is 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," he said.

Premesh, who is former chief executive officer of Malaysiakini, said that while the diversion of funds made a dent on the company’s finances, Malaysiakini’s core operations remain unaffected.

"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 said.

The board said it would provide further updates as more information becomes available, subject to the constraints of the ongoing investigation and litigation.

-- BERNAMA