1MDB president Arul Kanda has received a chiding from a DAP lawmaker over what the latter described as another attempt to mislead the public on the debt-laden firm.
This is after Arul denied Tony Pua's claim that 1MDB's management had not allowed Deloitte to commence an audit of the company's accounts for the financial year ending March 31, 2015.
"The board and management of 1MDB met Deloitte as early as February 2015 to discuss commencement of an audit after the financial year end of 31 March 2015.
"In fact, the audit of a major 1MDB subsidiary, Edra Global Energy Bhd, has already commenced and is well under way," Arul had said.
However, Pua argued the issue raised is about the parent body 1MDB and not the company's subsidiaries such as Edra Global Energy Bhd.
"He claimed that the audit of a major 1MDB subsidiary, Edra Global Energy Bhd, has already commenced and is well under way.
"I asked about the holding company, 1MDB, where all the controversy over its funds, cash flow problems and alleged misappropriations lie, but Arul tells us that the audit has commenced on its subsidiary," he said in a statement today.
This is not the first time Arul had been criticised for making such statements.
Drubbing from The Edge
Last Monday, The Edge Media Group publisher Ho Kay Tat criticised Arul for a non-answer over a report about how billionaire Jho Low used US$260 million of 1MDB's cash to buy UBG Bank in 2010.
Arul had said the 1MDB board categorically denied approving any transfer of funds to third parties, other than to the intended beneficiary.
However, Ho said the The Edge's report never alleged 1MDB transferred funds to third parties.
Instead, the claim was that 1MDB's executives had worked with Jho Low (photo) and top executives of PetroSaudi International to have 1MDB subscribe to US$500 million of Murabahah notes from the latter.
A total of US$260 million of the amount was then channelled to Jho Low's Javace Sdn Bhd to buy UBG Bank.
"It is bad enough that 1MDB has not been very transparent in keeping the public informed of its operations, but what is worse is that when it does say something, it always does not address the questions at hand," said Ho.
Two different processes
In the latest case, Pua said Arul failed to address the question on when the statutory audit of 1MDB would commence.
He argued that the ongoing audit by the Auditor-General's Department is not an excuse not to conduct the statutory audit, which is a requirement under the Company's Act 1965.
"These are two different and independent processes which surely a multi-billion ringgit public-interest company cannot afford to neglect.
"Any breach of the Act is serious enough to dictate imprisonment of five years or a RM30,000 fine 'if any director of a company fails to comply or take all reasonable steps to secure compliance by the company … has by his own wilful act been the cause of any default by the company thereunder, he shall be guilty of an offence against this Act'," he added.
Earlier today, Pua, who is a member of the Public Accounts Committee (PAC), said it was revealed to the committee that Deloitte was not allowed to commence auditing 1MDB even though the report is due at the end of September.
He said the norm was to start the audit three to four months before the financial year ends (March 31, 2015) but 1MDB has yet to commence its statutory audit more than two months after the date.
"Given the size and complexity of the company, it is once again assured that 1MDB will be late for the submission of its financial statements to the Companies Commission," Pua added.
This is after Arul denied Tony Pua's claim that 1MDB's management had not allowed Deloitte to commence an audit of the company's accounts for the financial year ending March 31, 2015.
"The board and management of 1MDB met Deloitte as early as February 2015 to discuss commencement of an audit after the financial year end of 31 March 2015.
"In fact, the audit of a major 1MDB subsidiary, Edra Global Energy Bhd, has already commenced and is well under way," Arul had said.
However, Pua argued the issue raised is about the parent body 1MDB and not the company's subsidiaries such as Edra Global Energy Bhd."He claimed that the audit of a major 1MDB subsidiary, Edra Global Energy Bhd, has already commenced and is well under way.
"I asked about the holding company, 1MDB, where all the controversy over its funds, cash flow problems and alleged misappropriations lie, but Arul tells us that the audit has commenced on its subsidiary," he said in a statement today.
This is not the first time Arul had been criticised for making such statements.
Drubbing from The Edge
Last Monday, The Edge Media Group publisher Ho Kay Tat criticised Arul for a non-answer over a report about how billionaire Jho Low used US$260 million of 1MDB's cash to buy UBG Bank in 2010.
Arul had said the 1MDB board categorically denied approving any transfer of funds to third parties, other than to the intended beneficiary.
However, Ho said the The Edge's report never alleged 1MDB transferred funds to third parties.
Instead, the claim was that 1MDB's executives had worked with Jho Low (photo) and top executives of PetroSaudi International to have 1MDB subscribe to US$500 million of Murabahah notes from the latter.A total of US$260 million of the amount was then channelled to Jho Low's Javace Sdn Bhd to buy UBG Bank.
"It is bad enough that 1MDB has not been very transparent in keeping the public informed of its operations, but what is worse is that when it does say something, it always does not address the questions at hand," said Ho.
Two different processes
In the latest case, Pua said Arul failed to address the question on when the statutory audit of 1MDB would commence.
He argued that the ongoing audit by the Auditor-General's Department is not an excuse not to conduct the statutory audit, which is a requirement under the Company's Act 1965.
"These are two different and independent processes which surely a multi-billion ringgit public-interest company cannot afford to neglect.
"Any breach of the Act is serious enough to dictate imprisonment of five years or a RM30,000 fine 'if any director of a company fails to comply or take all reasonable steps to secure compliance by the company … has by his own wilful act been the cause of any default by the company thereunder, he shall be guilty of an offence against this Act'," he added.
Earlier today, Pua, who is a member of the Public Accounts Committee (PAC), said it was revealed to the committee that Deloitte was not allowed to commence auditing 1MDB even though the report is due at the end of September.He said the norm was to start the audit three to four months before the financial year ends (March 31, 2015) but 1MDB has yet to commence its statutory audit more than two months after the date.
"Given the size and complexity of the company, it is once again assured that 1MDB will be late for the submission of its financial statements to the Companies Commission," Pua added.
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