Haramj_dah Management : In 2016 1MDB Declares Their 2013-2014 Audited Accounts Unreliable, 3rd Auditor Quits

The following is summarised from The Star :  

1MDB: Don’t rely on 2013, 2014 financial statements

• KL : (1MDB) decided its 2013-14 audited financial statements no longer reliable  
• move follows . . civil forfeiture suits by US (DOJ), 1MDB said
• DOJ filed forfeiture lawsuits to recover assets misappropriated from 1MDB
• assets for seizure held by Najib’s stepson Riza, Jho Low, two Abu Dhabi reps
• " board decided ..as precautionary measure," 1MDB said Tues (ie  26/7/'16) 
• 1MDB finding new auditor to replace Deloitte, which resigned  .. . .. 
• Bernama

My comments :  I am just borrowing the PM's language. It is the PM who used the word haramjadah.  He was actually referring to himself. And this is typical haramjadah management.  

Just now I was discussing with my good wife about a missing receipt.  We have no choice but to pay GST on a higher amount. A small loss that we have to absorb. We are law abiding people.

But these haramjadah can release a statement IN 2016 telling the public 'Err..we wish to inform you that our audited accounts for 2013 and 2014 are not reliable'.

Just like that? So what about the investing public, the banks who lent you money, your clients, customers etc who may have relied on your AUDITED ACCOUNTS IN 2013-2014 to lend you money, to do business with you, to invest in your projects etc over that period of time ?  How do you expect them to explain to their shareholders, their Boards, their clients and customers? Just say 'Oops !!'.  

1MDB must realise that people can sue them in civil courts for misrepresentation or worse.   1MDB even applied for a listing on the KL Stock Exchange, using Audited Accounts which they now say are "unreliable".

Here are some comments by Ganesh Sahathevan about this crap :

Audited financial statements signed-off as true and fair cannot be declared unreliable by the very same managers and directors who signed off on the  financial statements. It is a bit like un-swearing a statutory declaration (yes, I know this has been done, but  Cecil Abraham & co live in a different universe).

And do note dear readers, that these signed financial statements are not only signed, but then sworn as true and fair before a notary public.

1MDB's declaration that  its 2013 and 2014 audited financial statements should no longer be relied on is therefore only relevant to charges against the 1MDB board for swearing a false declaration.  Civil suits are another matter, but I do (not)  want to digress into that. 

Then the auditors. The auditors provide an opinion with regards the signed and sworn statements. If the directors and management then say the accounts are not reliable (or should not be relied on) then the (auditor's) opinion is no longer valid and should be withdrawn.  It really is as simple as that, hefty audit fees notwithstanding.

END

For reference :   Malaysia's Ministry of Finance admits Delloites 1 MDB audit is in error.: Delloites "true and Fair " opinion proven to be invalid

My comments :  1MDB has basically also said that their auditors Deloitte's has done a con job. Deloitte's should also sue 1MDB. 

But (wrt the US DOJ asset seizures) didnt 1MDB just say that they have done no wrong? That they stand by whatever they have done over these past years?    So why declare your own audited accounts from 2013-2014 as unreliable? 

This is a first in the history of audited accounts in Malaysia (or maybe in the world) where a company has declared that its historical audited accounts were "unreliable". 

Ministers can make public pronouncements that the Prime Minister does not know what he signs.

The PM's lawyer can say that the PM "need not know" what he signs.

Now 1MDB can say their historical audited accounts are not reliable. 

You just cannot trust these people for anything.  They do not hold themselves accountable for anything. They can just do as they please.  

Here is a video of the j _ dah talking crap :

VIDEO LATER

Posted by Syed Akbar Ali