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1MDB accounts manipulated to reflect profit, says DAP

 | June 28, 2012

Opposition PAC members say that if not for loans amounting to RM2 million, the government agency would not have recorded a profit last year.

KUALA LUMPUR: Public Account Committee (PAC) chairman Azmi Khalid made an unfair conclusion when he said the accounts of 1Malaysia Development Bhd (1MDB) were healthy and balanced, says PAC member Tony Pua.

He said the conclusion was unfair because the company’s profit last year hinged on the re-evalution of land and other loans amounting to RM2 million.

Pua together with opposition PAC members Tumpat Kamarudin Jaffar from PAS and Selayang MP William Leong from PKR spoke to reporters today to voice their discontent with the on-going investigations over the funds allocated to the state-run strategic investment agency.

Pua said the company’s cash flow for year-end March 31, 2011 showed that the record balanced because of the RM 2.05 million loan.

Without this loan, the cash flow would have been negative, resulting in a loss for the financial year 2011.

“The reality is that 1MDB’s accounts are manipulated to [reflect a profit]. It is not fair to conclude that the accounts are in order,” he said.

Pua added that a re-evalution of land in Kuala Lumpur City Centre from RM194,113 to a whopping RM1,020,708 also contributed to the loan amount. He said that this contributed to the RM544 million profit.

PAC first started investigation over the functions and activities of 1MBD last November. After a break of about five months, the parliamentary committee resumed its investigations yesterday.

Azmi said the Auditor-General’s office was also asked to look into the company’s finances. Only one document – the cash flow – out of seven requested was obtained by the committee yesterday.

The other six documents pertained to 1MDB’s deals with PetroSaudi International Limited.

Last June, Opposition Leader Anwar Ibrahim had asked PAC to investigate the investments after Prime Minister Najib Tun Razak announced that 1MDB had entered into a RM3.5-billion deal with PetroSaudi.

PetroSaudi then sold its stake back to 1MDB for RM4.1 billion, recording a RM615 million profit.

The documents requested from Petro Saudi were the company’s audited accounts and the company’s agreement with 1MDB, among others.

It is still unclear what will happen to the investigation as Azmi said that it will be decided at a later date.

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PAC finds 1MDB ‘healthy and balanced’


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