Audit report not given to 1MDB due to secrecy laws, says witness

Former National Audit Department director Saadatul Nafisah Ahmad Bashir says 1MDB knew what would be in the audit report. (Bernama pic)

KUALA LUMPUR: A former government auditor told the High Court in Najib Razak’s 1MDB audit tampering trial that the National Audit Department was bound by secrecy laws and as such, could not give the final draft report to the company’s officials.

Saadatul Nafisah Ahmad Bashir, who was a director in the audit department, said that then auditor-general Ambrin Buang had exercised his discretion to place the final draft report under the Official Secrets Act (OSA) after the Chief Government Security Office had advised them to do so.

“We had met them (1MDB management team) and raised our concerns with them on various issues during the exit conference.

“They knew what we would be writing in the report,” she said when questioned by the former prime minister’s lawyer, Muhammad Shafee Abdullah.

Shafee questioned the witness on why the audit department did not extend a copy of its final draft report to 1MDB, as it was a normal practice under company laws that required auditors to do so.

He pointed out that during the meeting held between the department, former 1MDB chief executive officer Arul Kanda Kandasamy and other senior government officials on Feb 24, 2016, Arul had asked for a final draft copy from the audit department.

Shafee asked: “As a matter of natural justice, do you think it is fair to extend a final draft copy for the auditee (Arul and 1MDB)?”.

To that, Nafisah said in normal circumstances, the audit department would do that.

“However, 1MDB is a special audit and we are presenting it to the PAC,” she said referring to the Dewan Rakyat’s bi-partisan Public Accounts Committee.

“I had discussed with Tan Sri Ambrin. Since it is under OSA, we do not give the final draft report to anyone.”

Shafee then asked if it was possible for Ambrin to “declassify the final draft for Arul even for a few hours for him to read”.

Nafisah agreed with the suggestion, adding that it was Ambrin’s prerogative to do so.

The hearing before High Court judge Mohamed Zaini Mazlan is adjourned to another date that has yet to be fixed.

Najib is accused of using his position to obtain immunity from legal action in relation to allegations that he tampered with the 1MDB audit report between Feb 22 and 26, 2016 while Arul is accused of abetting in the crime. - FMT