Indonesian startup eFishery appoints FTI Consulting as manager amid alleged fraud probe

FTI Consulting

04/02/2025 12:35

SINGAPORE, Feb 4 (Reuters) - Indonesian aquaculture tech
startup, eFishery, said on Tuesday that it has appointed
business advisory firm FTI Consulting to act as its new
management following allegations of misconduct including fraud
by certain members of its management.
    eFishery has not given details of the allegations but FTI
was brought in to conduct an investigation after alleged
misconduct was first reported by DealStreetAsia in December.
    The board directors of eFishery said on Tuesday that the
involvement of independent third-party management aimed to
facilitate a thorough and objective business review to determine
the best path forward for the company and its subsidiaries.
        "In response to information received in late 2024
pertaining to alleged misconduct (including fraud) by certain
management of our group companies, and upon reviewing the
interim report from FTI consulting regarding the governance and
financial conditions of eFishery Pte Ltd. ... and its
subsidiaries ... the company has immediately taken necessary and
proactive steps to address such information, including involving
FTI Consulting as the acting management of the company,
effective immediately," eFishery's board said in a statement.
    The decision was made with the approval of shareholders, it
said.
    Shareholders of eFishery include Japan's SoftBank and
Singapore-headquartered private equity firm Northstar Group. 
    The company, founded in 2013, said recent revelations of
alleged misconduct including fraud could jeopardize confidence
in the Indonesian investment climate and that it would move
forward to protect that.
    FTI, in a separate statement, confirmed its involvement in
the acting management of eFishery and said it aimed to support
ongoing efforts to conduct a thorough and objective business
review of the company's true financial and operational position.
    

 (Reporting by Yantoultra Ngui; Editing by Susan Fenton)
 ((Yantoultra.Ngui@thomsonreuters.com;))