eFishery Founder’s Fraud Investigation Report Leaked, Here’s How It Worked
Jakarta, CNBC Indonesia –Startup eFishery has stumbled upon a case of alleged financial report falsification. The audit results show that management has had two different financial reports since 2018, namely for internal and external needs.
In the internal financial report, eFishery collected revenue of IDR 2.6 trillion during the 9-month period, namely January-September 2024. Meanwhile, the external financial report shows that eFishery earned 4.8 times more revenue worth IDR 12.3 trillion.
Based on the financial report published for external parties, eFishery’s revenue growth has soared. In 2021 it was worth IDR 1.6 trillion, then in 2022 it became IDR 5.8 trillion, and in 2023 it became IDR 10.8 trillion, according to documents received by CNBC Indonesia, Thursday (23/1/2024).
The figures differ in the internal financial report which shows eFishery’s revenue of IDR 1 trillion in 2021, then IDR 4.3 trillion in 2022, and IDR 6 trillion in 2023.
The internal and external reports are also unequal in recording profit before tax. Based on the external report, eFishery posted a profit before tax of IDR 261 billion during the period January-September 2024. In fact, the internal report version shows that eFishery actually lost IDR 578 billion in the same period.
Since 2021 to 9 months in 2024, eFishery’s external report shows positive and stable growth in profit before tax. In contrast to the internal report which shows the company has continued to lose since 2021.
The worst loss in 2022 was IDR 784 billion. Then in 2023 it was IDR 759 billion.
The manipulation carried out by e-Fishery was not only from the financial report, but also the claim of former CEO Gibran Huzaifah who admitted to investors that the company had more than 400,000 feed facilities. In fact, the reality in the field was only around 24,000.
Gibran is suspected of deliberately ordering the inflation of the company’s capital costs for the purchase of feed. According to the audit report, this was to justify the company’s declining financial condition.
Gibran and his team’s manipulation efforts since 2018 were carried out in order to obtain Series A funding. The report found that in 2022 there were 5 companies formed controlled by Gibran but in the names of other people. This company functions to record the turnover of money to boost the company’s income and expenses.
In 2023, Gibran and several other people launched an effort to falsify supporting documents such as invoices, contracts, and fake bookkeeping.
In mid-December, eFishery announced the appointment of Adhy Wibisono as interim CEO to replace Gibran Huzaifah. Before being appointed as CEO, Adhy was the CFO of the company. Albertus Sasmitra was appointed as eFishery’s interim CFO to replace Adhy.
“eFishery is currently operating under the leadership of Adhy Wibisono, as Interim CEO, and Albertus Sasmitra, as Interim CFO. The decision was taken together with the company’s shareholders, as a form of commitment to improving good corporate governance,” said an eFishery spokesperson in a written statement received by CNBC Indonesia, Monday (16/12/2024).
In the company’s statement received, eFishery said that it understands the seriousness of the issues currently circulating, and is paying full attention.
“We understand the seriousness of the issues currently circulating and we are responding to them with full attention. We are committed to maintaining the highest standards of corporate governance and ethics in the company’s operations,” said an eFishery spokesperson.
The eFishery startup was founded in 2013 by Gibran Huzaifah in Bandung. The company has achieved unicorn status through Series D funding of US$ 200 million in 2023.
SOURCE : CNBC INDONESIA
