KPMG Malaysia says 1MDB audits from 2010 to 2012 were unreliable

KPMG Malaysia were the auditors for 1MDB for the financial years 2010 to 2012. — Reuters pic
KPMG Malaysia were the auditors for 1MDB for the financial years 2010 to 2012. — Reuters pic

KUALA LUMPUR, June 26 ― KPMG Malaysia said today its audit reports on 1Malaysia Development Berhad (1MDB) for financial years 2010 to 2012 were unreliable.

The accounting firm said since the Auditor General audited the company and the government declassified the audit and review of 1MDB on May 15 this year, it has considered the contents of the report and other relevant information, since it did not have access to information related to the state investment firm after December 31, 2013.

“On 31 December 2013, during the audit of the financial statements for the year ended 31 March 2013, the firm’s appointment as auditors was terminated and the firm did not have access to information related to 1MDB subsequent to that date,” KPMG Malaysia said in a statement.

“Having considered the contents of this report [1MDB federal audit] and other relevant information, we had written to 1MDB on 8 June 2018 to inform the company it should immediately take all necessary steps to prevent any further or future reliance on the audit reports prepared by KPMG Malaysia for the financial years ended 31 March 2010 to 31 March 2012,” it added.

KPMG Malaysia were the auditors for 1MDB for the financial years 2010 to 2012. On December 31, 2013, during the 2013 audit of 1MDB, the firms services were terminated and it does not have information pertaining to the firm beyond that date.

Three international accounting firms which are part of the “Big 4” had quit as auditors of 1MDB. They include Ernst & Young, Deloitte’s and KPMG.

1MDB, which was state investment fund set up by former prime minister Datuk Seri Najib Razak, has been embroiled in one of the largest financial scandals in the world.

Prime Minister Tun Dr Mahathir Mohamad has vowed to address the IMDB issue as one of his election promises.

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