In a statement, Mkini Group, which runs Malaysiakini, said the funds were diverted between March 2023 and March 2024, but remained undetected until recently as the audited company accounts claimed they were in a “fixed deposit placed with a licensed bank”.

It also said the diversion of the funds was “enabled” by former key employees of Malaysiakini.

Mkini Group said active remedial measures are under way.

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

“We are extremely devastated by these unauthorised actions,” said Gan, a 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.”

Premesh, a former CEO, said that while the diversion of funds affected the company’s finances, Malaysiakini’s core operations remain unaffected.

“Diverting these funds – perpetrated by former colleagues – severely damages our resilience, and distracts from our mission to speak truth to power,” he added.