Business

1MDB refutes Tony Pua’s Deloitte claim

1mdb

Nikita Nawawi
Written by Nikita Nawawi

KUALA LUMPUR – June 11, 2015: Government-owned strategic development company 1Malaysia Development Berhad (1MDB) has denied an allegation by DAP publicity secretary Tony Pua that international auditor Deloitte was prohibited from auditing the company.

1MDB president and group executive director Arul Kanda Kandasamy, in a press statement released today said the auditing by Deloitte has already commenced.

“I refer to a statement issued today by (Petaling Jaya Utara member of parliament) Tony Pua as reported in a local English portal. In relation to 1MDB, Pua was quoted as saying that the Ministry of Finance (MoF) and company directors were ‘refusing to allow Deloitte’ to begin auditing 1MDB. This is absolutely incorrect and untrue.

“The Board and management of 1MDB met Deloitte as early as February 2015 to discuss the commencement of an audit after the financial year end of 31 March 2015.

“In fact, the audit of a major 1MDB subsidiary, Edra Global Energy Berhad, has already commenced and is well under way,” the statement read.

Arul added that 1MDB is currently undergoing a thorough review and investigation of its accounts by the National Audit Department.

“Management time is fully focused on this, given the significant public interest to complete the review as soon as possible.

“The Board of 1MDB has maintained a regular dialogue with Deloitte on the audit process and a further update will be issued when appropriate,” he said.

Pua was reported as demanding Prime Minister Datuk Seri Najib Razak to explain the reason Putrajaya has allegedly yet to direct Deloitte to audit the 1MDB account after over two months since the company’s financial year ended.

He claimed that MoF and the company directors were violating the Companies Act by ‘refusing to allow Deloitte’ for such an imposition as he cited Clause 160(1) of the Act that stated a company’s audited report must be lodged within six months after the financial year ends.

Under the Act, a company director could be jailed for up to five years or fined RM30,000 for such an offence.

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About the author

Nikita Nawawi

Nikita Nawawi

Nikita Nawawi is an up-and-coming writer who started his involvement in the media industry serving established local English daily, before joining The Mole in October 2014 as journalist.