PAC: Deloitte yet to audit 1MDB’s financial year

KUALA LUMPUR: The accounts of 1Malaysia Development Berhad (1MDB) for the financial year that ended in March this year have yet to be audited, said the Public Accounts Committee.

Its chairman Datuk Nur Jazlan Mohamed said this was revealed by 1MDB auditors Deloitte during a four-hour inquiry.

“They have yet to get any instructions from their clients, the Ministry of Finance, to carry out an audit of 1MDB's account for the financial year which ended on March 31,” he told a press conference yesterday.

Asked why the accounts had yet to be audited, Nur Jazlan said the question should be directed at the ministry.

Explaining the situation: DeLoitte’s country managing partner Tan Theng Hooi (left) and Deloitte partner Ng Yee Hong leaving the Public Accounts Committee inquiry.

He described the probe into Deloitte’s role as auditors as “a blessing in disguise” as it had provided the bipartisan committee crucial information.

On 1MDB's standing as of March 31, 2014, he said the committee had accepted Deloitte's explanation of its unqualified audit which was carried out in a “true and fair” manner.

“They said 1MDB was a going concern and had sufficient assets to operate as a sovereign fund,” he said, adding that 1MDB had assets totalling RM13.4bil in Singapore’s BSI Bank.

On Prime Minister Datuk Seri Najib Tun Razak's son Nizar Najib, who is with Deloitte, Nur Jazlan said Nizar had no role in the audit.

“He is not with the audit section but is with the financial services section. He was not involved in 1MDB audit.

“There is no political interference,” Nur Jazlan said.

He added that 1MDB’s former auditors KPMG and Ernst & Young would testify before the committee on June 17.

Nur Jazlan said that 1MDB president and group executive director Arul Kanda Kandasamy as well as its former chief executive officer Datuk Shahrol Halmi will be called to testify in the first week of August.

“There will be no excuses for them not to attend this time,” he added. The two, who had been scheduled to appear before the committee on May 26 were unable to do so as they were abroad.

Besides the auditors and board of directors, the committee could also call call businessman Jho Lo and Najib.

Nur Jazlan also said the Auditor-General and Bank Negara's officials could also be called to shed more light on 1MDB following their own investigations.

“We expect to complete the inquiry by August and will decide who to call next in September,” he said.