NEXT – 1MDB PROBE SWIVELS TO NAJIB’S SON’S DELOITTE AUDITING FIRM OVER ‘FALSE INFORMATION’ TO PAC: IF AUDITORS CAN BETRAY PUBLIC TRUST TO THE EXTENT THEY DARE TO LIE EVEN TO PARLIAMENT – THEY SHOULD BE JAILED

DELOITTE Malaysia should be held accountable for providing false information in the audit of 1Malaysia Development Bhd (1MDB) to the Public Accounts Committee (PAC), said DAP lawmakers today.

Kepong MP Lim Lip Eng said Deloitte auditor Tan Theng Hooi signed off on the audit and should be held responsible.

“At that time he even defended the audited account for 1MDB. We want the new government to take action against this accountancy firm,” he told reporters at the Parliament lobby.

Lim also urged the Malaysian Institute of Accountants (MIA) to take action on the company as DAP’s Tony Pua had lodged a complaint in 2015.

“I want MIA to state clearly and immediately as to what their position is on the account audited by one of its members,” he said.

Kampar MP Thomas Su also said this was a matter of national interest and the relevant agencies must be professional in handling the matter.

“MIA should take action because it is very clear that one of its members came to Parliament and defended the report at the Public Accounts Committee (PAC). Serious action must be taken,” said Su.

In 2016, Deloitte said its audit reports on 1MDB for 2013-2014 should not be taken into account as there was new information revealed from the US Department of Justice’s lawsuit. – the malaysian insight

1MDB probing Deloitte’s testimony to PAC

The current administration of 1MDB is probing statements made by Deloitte Malaysia’s former managing partner Tan Theng Hooi to the Public Accounts Committee in 2016.

This was revealed by the Finance Ministry in a parliamentary written reply to Lim Lip Eng (Harapan-Kepong), who accused Tan of lying to the PAC in June that year.

Tan was among seven individuals who signed off 1MDB’s financial statements for the year 2014.

In July 2016, Deloitte resigned as 1MDB’s auditors, and said that its audits for the company in 2013 and 2014 could no longer be relied upon.

This occurred soon after the US Department of Justice (DOJ) filed a suit to seize assets which were allegedly acquired using funds misappropriated from 1MDB.

Deloitte had said that information arising from the DOJ suit would have impacted 1MDB’s financial statements had it been known earlier.

‘Take action against Deloitte’

Lim (photo) later told reporters that the Malaysian Institute of Accountants (MIA) should take action against Tan and Deloitte for defending the firm’s audit opinion on 1MDB when testifying before the PAC.

“We all know now that these defences were false and lies, we call upon MIA to take action against Tan, who came and lied to the PAC and defended the firm’s audit opinion on 1MDB before,” he said.

In 2015, then-Petaling Jaya Utara MP Tony Pua had lodged a report with the MIA against Deloitte for allegedly failing to raise alarms on 1MDB’s debt levels. It remains unknown if any action was taken against the firm, however.

1MDB has gone through several prominent audit firms in its short history.

Its predecessor, Terengganu Investment Authority, had engaged Ernst & Young in 2009 before they were replaced by KPMG in 2010.

Deloitte was appointed by 1MDB in 2013 but resigned in 2016. 1MDB went on without an auditor until May this year, when Parker Randall was brought in.

the malaysian insight / mkini