KUALA LUMPUR — The Board of Directors of Mkini Group Sdn Bhd, the publishing company of Malaysiakini, has revealed that RM3 million from its subsidiaries was unlawfully redirected to third-party entities suspected of operating unlicensed investment schemes.
In a statement, the company said the alleged misappropriation occurred between March 2023 and March 2024, and was carried out by former senior employees of Malaysiakini.
The diverted funds were recorded in the company’s audited accounts for 2023 and 2024 as “fixed deposits placed with a licensed bank,” which allowed the scheme to go undetected for some time.
After an internal investigation, which was supported by independent legal and financial experts, the board filed a police report and informed the management and staff of the findings.
Efforts are now underway to recover the funds and implement remedial actions.
Steven Gan and Premesh Chandran, co-founders and non-executive directors of Malaysiakini, expressed their deep regret over the incident.
Gan, who previously served as the editor-in-chief, said they were “extremely devastated by these unauthorised actions.”
“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, former CEO, recognised the financial damage but assured that the company’s operations remain unaffected.
“The funds were accumulated over the last decade and formed a significant part of our reserves. The diversion of these funds — perpetrated by former colleagues — severely undermines our resilience and detracts from our mission to speak truth to power,” he stated.
The board has committed to providing further updates as the investigations and legal proceedings continue. – March 5, 2026