1MDB already audited by a ‘big company’, A-G says

1Malaysia Development Bhd is currently audited by 'a big international' firm, Auditor General Tan Sri Ambrin Buang said today. — Reuters pic
1Malaysia Development Bhd is currently audited by 'a big international' firm, Auditor General Tan Sri Ambrin Buang said today. — Reuters pic

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KUALA LUMPUR, Nov 12 — The Auditor-General’s Department did not audit 1Malaysia Development Bhd (1MDB), which is accused of financial irregularities, because it was already audited by “a big international” firm, Auditor-General Tan Sri Ambrin Buang said today.

“As far as their accounts is concerned, there is no need to come back and open their books because they have already been audited by one of the big boys,” Ambrin told a town hall meeting on the third series of the 2013 A-G report held at the Angkasapuri here.

“It was a big international company,” he added without naming the firm.

1MDB had been subject to opposition scrutiny following several  investments it made domestically and abroad, the most notable being  RM7 billion parked in the Cayman Islands.

Last week, however, Deputy Finance Minister Datuk Ahmad Maslan said 1MDB will withdraw its investments in the Cayman Island with a six per cent return in a bid to deflect opposition claims that much of the money was lost in allegedly unaccounted for investments.

The Pontian MP also said currently 60 per cent of the investment have been withdrawn and the rest will follow by year end.

Opposition lawmakers had previously raised stink over revelations that an obscure Hong Kong firm, Bridge Partners, is managing about US$2.3 billion (RM7.6 billion) of 1MDB’s funds.

The money was invested in the Cayman Islands, according to a report by the Singapore Business Times.

Citing documents it had seen, the paper said the US$2.3 billion is invested in unlisted open-ended funds that focus on the energy sector.

The funds were invested through 1MDB’s wholly-owned unit Brazen Sky Ltd, the report added.

Ahmad also said 1MDB will be given full autonomy to determine how to invest that money, despite opposition concern that the investment arm was pouring taxpayers money into dubious deals.

1MDB, which is wholly-owned by the government of Malaysia, booked a loss of RM665.36 million in its previous financial year, a local daily reported today citing a filing with the Companies Commission of Malaysia (CCM).

According to a report by The Star, 1MDB’s filing showed a loss before tax of RM668.55 million against reported revenues of RM4.258 billion.

The filing was made after the sovereign wealth fund closed its books last week, some seven months after the end of its financial year in March 31, 2014.

The loss was smaller, however, than that registered in its previous financial year, when it suffered losses of RM778.243 million.

Meanwhile 1MDB claimed its non-current assets now stood at RM31.879 billion while current assets were at RM19.529 billion. It continues to hold a total of RM48.5 billion in both non-current and current liabilities.

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