1MDB yet to notify SSM of meeting date

KUALA LUMPUR: Companies Commission of Malaysia (SSM) is monitoring 1Malaysia Development Bhd (1MDB) which is yet to notify and update the former on the status of its AGM to table its overdue accounts, as at press time.

"We (SSM) are currently monitoring the situation," it said in an email reply to SunBiz.

According to SSM, it has issued a notice to the sovereign wealth fund's company secretary to notify and update it on the status of 1MDB's AGM as well as on the tabling of its audited accounts for the financial year ended March 31, 2013.

"As required by section 165(4) Companies Act 1965 (Act 125) ('CA1965'), 1MDB has 30 days from the date of the AGM to submit the company's annual return together with the audited financial statement to SSM, failing which it will constitute an offence under the same section," it said.

The commission said enforcement action will be taken against the company and its directors who fail to comply with the provision of section 169(1) and section 165(4) CA 1965 in normal circumstances. The provisions relate to the tabling of audited financial statements in the company's AGM and the submission of annual return together with the audited financial statement to SSM.

It said the mode of enforcement action includes issuance of compliance notices to compel companies to comply with the aforesaid provisions, issuance of compound notices to companies and its directors and institution of prosecution action against companies and its directors.

SSM said it may also initiate civil action in the high court under section 12 (1) CA 1965 to compel the company to submit statutory documents to the registrar.

An English daily had quoted 1MDB's official as saying, a day after its extension of time to file its accounts ended, that its newly appointed auditor, Deloitte, had signed off the accounts of the fund. It also said it was in the process of lodging its accounts with SSM.

In a new release dated Feb 21 2014, 1MDB said it was granted an extension of up to the March 31 2014 to file its annual returns to SSM.

1MDB said it expects to file and submit its audited accounts in accordance to the extension granted by SSM.

The government sovereign wealth fund said it had appointed Deloitte to complete the audit for the year ended March 31, 2013, after it was mutually agreed with KPMG that the firm would cease to be 1MDB's auditors.

The change in auditors was done in the midst of finalising its FY13 accounts.

1MDB first attracted criticism when it was reported that the fund had placed a sum of US$2.3 billon with a fund in Cayman island.

Critics argued that the move goes against its mandate to drive investments in strategic sectors with high impact on the local economy.