KUALA LUMPUR, June 11 — 1Malaysia Development Bhd’s (1MDB) colourful history with audits is set to continue as Deloitte Malaysia has been barred from starting work on the latest edition by the government, DAP’s Tony Pua said today.

Saying the decision to prohibit Deloitte from beginning the audit would again mean 1MDB missing its deadline, the Petaling Jaya Utara MP said Putrajaya was intentionally flouting the Companies Act on the timely submission of accounts.

1MDB’s financial year ended on March 31, which means it must submit its annual audited accounts no later than September 30.

“The discovery that the audit has yet to commence is highly surprising given that normally the audit work for the company the size of 1MDB would have started as early as three to four months before the financial year end,” Pua said of the disclosure by Deloitte to the Public Accounts Committee investigating 1MDB.

“Given the size and complexity of the company, it is once again assured that 1MDB will be late for the submission of its financial statements to the Companies Commission.”

Pua pointed out that failure to submit financial documents on time would contravene Clause 169(1) of the Companies Act, with Clause 17(1) of the same Act prescribing five years’ jail or a RM30,000 fine for directors who fail to comply or wilfully cause non-compliance.

The federal lawmaker said that Putrajaya’s decision to bar Deloitte from starting work would fit under the category of willfully causing 1MDB to fail in submitting its accounts on time.

The Companies Commission must not grant any extension for 1MDB to submit its accounts unlike in the past, Pua said when pointing out that this year’s delay would have been explicitly ordered.

“We would also call upon the prime minister to immediately demand that 1MDB allow Deloitte to carry out their audit exercise immediately to protect the reputation of the Finance Ministry and to uphold good corporate governance and financial integrity in 1MDB,” he added.

1MDB has had three different auditors since its inception in 2009, with Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah attempting to explain this anomaly by claiming that it was necessary for firms to switch auditors every three years.

The repeated delays and difficulty in closing its accounts was among the issues that have fostered suspicion over 1MDB’s management, amid continued allegations of impropriety in its amassing of RM42 billion in debt over five years.

Deloitte itself is under an investigation by the Malaysian Institute of Accountants following a complaint lodged Pua over its audit of the previous 1MDB financial year.

1MDB is being investigated by at least three federal agencies including the PAC.

The firm was incorporated in 2009, after the prime minister announced the decision to turn the Terengganu Investment Authority state fund into a federal agency.

Since then, 1MDB has been dogged by negative publicity over its finances and debt, and most recently cash flow problems that saw it struggle to meet a RM2 billion loan payment.