1MDB board of directors must meet to appoint new auditor, says Pua

DAP lawmaker Tony Pua wants the 1Malaysia Development Berhad board of directors to appoint an independent auditor to review the company’s financial statements. – The Malaysian Insider file pic, September 20, 2015. 

1Malaysia Development Berhad (1MDB) board of directors must convene an emergency meeting to appoint an independent auditor to review the company's financial statements for March 2013 and 2014, says DAP lawmaker Tony Pua.

He said the board had to ensure the firm was well managed and that its finances remained sound.

"As 1MDB is refusing to be truthful and forthcoming with the answers on the various allegations against the company, including the latest exposes by The Wall Street Journal (WSJ), the 1MDB board of directors must take note of the company’s belligerence.

"We call upon the board to convene an emergency meeting to appoint an independent auditor to conduct a special review of the 1MDB financial statements for March 2013 and 2014 to ensure that every sen in 1MDB has been properly accounted for and has not been embezzled or misappropriated," he said in a statement today.

WSJ reported two days ago that another US$993 million (about RM4.2 billion) remained unaccounted for, 10 days after allegations surfaced that a US$1.4 billion (about RM6 billion) payment was made by 1MDB to International Petroleum Investment Company in 2012.

1MDB appointed auditing firm Deloitte in December 2013, and they signed off on the firm’s accounts ending March last year on November 3.

Deloitte stated that the accounts represented a “true and fair view” of the group’s financial position then.

The Public Accounts Committee, whose probe into 1MDB is currently on hold because several of its members were appointed ministers in a late July reshuffling of the Cabinet, were dissatisfied with Deloitte’s explanations on 1MDB’s financials.

The auditor stated that 1MDB was a "going concern" when it last audited the firm's accounts for the financial year ending 31 March 2014.

In financial terms, "going concern" means robust business function without any threat of liquidation in the near future.

Criticism has been mounting over the state investment vehicle, established in 2009, which to date has racked up debts of RM42 billion.

Scrutiny has grown more intense following whistleblower site Sarawak Report's recent exposes, which piled pressure on Prime Minister Datuk Seri Najib Razak and prompted opposition politicians, former and current Umno leaders including long serving former prime minister Tun Dr Mahathir Mohamad and anti-graft bodies to demand a thorough investigation into the fund.

The company is now being probed by several authorities, including the auditor-general.

- TMI