KHAZANAH Nasional invested RM80 million (US$20 million) in a lingerie retailer and the amount was written off, said Mohamed Azmin Ali today.

The economic affairs minister said the national sovereign wealth fund’s diversion into such investment was among the reasons Putrajaya wants Khazanah to return to its “original objective”.

It should be focusing on increasing the wealth and management of strategic asset firms of the country, such as Telekom Malaysia and Tenaga Nasional Berhad (TNB), he said.

There was also an investment via a private equity to take over a bank went bust.

“But as a result, RM3 billion had to be written off,” Azmin replied to points raised during the royal address by members.

Pekan MP Najib Razak, who is also former prime minister, earlier asked Azmin to explain recent claims that Khazanah had strayed from its original objectives.

“In 10 years, Khazanah’s assets increased from RM33 billion to RM134.5 billion, in terms of creating wealth in the last 10 years, Khazanah had succeeded.

“I’m not trying to defend my time as Khazanah chairman but I would like to get some clarification on how is it that Khazanah had supposedly strayed form its original objectives,” Najib said.  

On July 30, Azmi said Khazanah will be revamped to return the sovereign fund to its original aim of owning and guarding national assets on behalf of Malaysians.

The revamp is among the first steps Khazanah will take under its new board unveiled recently.

Azmin was made director on Khazanah’s board together with Mohd Hassan Marican, Sukhdave Singh and Goh Ching Yin. Prime Minister Dr Mahathir Mohamad was appointed as chairman.

A new managing director will be appointed at a later date. – August 1, 2018.