1MDB: No party should rely on 2013, 2014 accounts

1mdb

PETALING JAYA: 1Malaysia Development Berhad (1MDB) has decided, as “a precautionary measure”, that its 2013 and 2014 audited financial statements should no longer be relied on by any party.

This is “pending final and conclusive determination by a court of law of certain alleged facts, as described in the complaint” by the office of the US Attorney-General.

The AG had announced on July 20, that the Department of Justice (DoJ) had filed a civil forfeiture complaint against certain entities and individuals.

The DoJ contemporaneously filed related actions seeking the civil forfeiture of certain assets held in the names of these parties.

“The Board of Directors of 1MDB has reviewed and deliberated the contents of this complaint.

“Whilst the board remains confident that no wrongdoing has been committed by 1MDB and that the past audited financial statements continue to show a true and fair view of the company’s affairs at the relevant points in time, the board has decided that, as a precautionary measure, the 2013 and 2014 audited financial statements of 1MDB should no longer be relied on by any party, pending final and conclusive determination by a court of law of certain alleged facts, as described in the complaint.”

In the statement, the 1MDB board took this opportunity to highlight that it was committed to finding a new auditor for 1MDB, to replace Deloitte, which has previously notified 1MDB of its intention to resign on Feb 26, 2016.

Until a new auditor is appointed, Deloitte will remain as auditor on record.

“The board appreciates the professionalism displayed by Deloitte to date and highlights that Deloitte will continue to audit key subsidiaries of 1MDB, including but not limited to TRX City Sdn Bhd (formerly known as 1MDB Real Estate Sdn Bhd), Bandar Malaysia Sdn Bhd and Edra Bhd.