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AG gives preliminary 1MDB audit to PAC

Auditor General Tan Sri Ambrin Buang

Auditor General Tan Sri Ambrin Buang

Syndicated News
Written by Syndicated News

KUALA LUMPUR — July 9, 2015: Auditor-General Tan Sri Ambrin Buang today gave a preliminary report on 1Malaysia Development Bhd (1MDB) to the Public Accounts Committee.

The PAC was expected to study the report at a session that had been scheduled up to 4 pm.

Media photographers were allowed to take photographs and make visual recordings before the PAC went into session.

Prime Minister Datuk Seri Najib Tun Razak had instructed the auditor-general on March 4 to vet the accounts of 1MDB and expressed the hope that the outcome would stop speculations about its activities.

The PAC initiated its own investigation into the government investment company on May 19

At a news conference PAC chairman Datuk Nur Jazlan Mohamed said the PAC wants 1MDB to hand over documents sought by the auditor-general to complete the audit.

The documents include bank statements and agreement papers considered crucial for the audit.

“We ask the 1MDB management to hand over all the documents — bank statements, agreements. The AG (auditor-general) has yet to get good cooperation from 1MDB.

“They have submitted documents but it’s not complete. Some documents may be crucial to complete the audit,” he said.

To ensure that 1MDB hands over the requested documents, the PAC has referred to the Ministry of Finance for further action.

“1MDB is a company wholly owned by the government under the Ministry of Finance … surely the MOF will offer full cooperation,” he said.

Asked whether the audit process took into account the allegation published last week in The Wall Street Journal that 1MDB funds had been channelled into the personal bank accounts of Najib, Nur Jazlan replied in the negative.

The AG took three months for the interim audit, beginning March.

“Recent developments are not in the report,” he said, while denying that there is an overlap of the investigation done by the PAC and the
Special Task Force on the 1MDB issue.

Nur Jazlan said the PAC did not wish to intervene in the investigation being carried out by the special task force and would wait for the complete report and information to be handed to it.

On Tuesday, the special task force led by Attorney-General Tan Sri Abdul Gani Patail, Bank Negara Governor Tan Sri Zeti Akhtar Aziz, Inspector-General of Police Tan Sri Khalid Abu Bakar and Malaysian Anti-Corruption Commission chief commissioner Tan Sri Abu Kassim Mohamed said it had issued an order to freeze six bank accounts believed to be associated with the case.

The 1MDB interim audit by the auditor-general focuses on four components, namely group assets; cash flow; guarantees and loans as well as
statements of accounts.

The scope of the audit covered 1MDB and its subsidiaries based on the statements of accounts from 2009 to 2014, the chronology of events in the
establishment of 1MDB and the management structure.

The National Audit Department inspected 1MDB documents, documents from audit firms Ernst & Young, KPMG and Deloitte as well as from the Ministry of Finance.

Interviews were held with the majority of the board of governors and the old and new management of 1MDB.

Nur Jazlan said the audit of the investments in the real estate and manpower sectors was ongoing and would be contained in the final report which was expected to be completed at year-end.

He said the interim report was very transparent and contained information necessary for the hearing with 1MDB CEO Arul Kanda Kandasamy and former CEO Datuk Shahrul Ibrahim Halmi next month. — Bernama

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