“No reason to audit 1MDB again”

KUALA LUMPUR: Auditor-General Tan Sri Ambrin Buang said there is "no reason" to audit the financial accounts of self-proclaimed strategic development company 1Malaysia Development Bhd (1MDB) given that it has already been audited.
"My answer is as far as their accounts are concerned, it has already been audited by one of the big four (audit firms), so there is no reason why we should ask them to open up their books because auditing financial statements is very laborious (with) examination of documents and things like that," he said at a media session in conjunction with the third series of the auditor's report 2013 here yesterday.
Chief Secretary to the Government Tan Sri Ali Hamsa said that 1MDB has addressed issues lingering around it, thus "no further details" will be given for the time being.
1MDB first attracted controversy for a RM7.18 billion investment it made in funds in the Cayman Islands, which many quarters had felt deviated from its mandate. After much furor, the government and 1MDB recently announced that it was bringing back the funds invested there, with interest.
1MDB said it has redeemed over RM4 billion investment in Segregated Portfolio Companies registered in Cayman Islands and is due to bring back the remainder in November together with the RM435 million interest it earned for it.
In February, 1MDB, which is wholly-owned by the Minister of Finance, appointed Deloitte as its auditor to replace KPMG.
For the financial year ended March 31, 2014, 1MDB posted a loss of RM665.3 million, due largely to higher finance costs of RM2.4 billion, compared with RM1.6 billion the previous financial year.
Following that, PKR vice president Rafizi Ramli reportedly urged the government to explain the RM3.76 billion incurred by 1MDB in its general and administrative expenses as well as finance cost.
Filings with the Companies Commission Malaysia (SSM) shows that 1MDB has RM48.9 billion in liabilities, of which RM11.13 billion is current liabilities and is payable within a year.
The government has recently stated that it only guarantees RM5.8 billion of its total debt.
Meanwhile, on the flooding at the klia2 parking apron, assistant chief secretary to the Ministry of Transport Datuk Ruhaizah Rashid said the ministry has discussed with Malaysia Airports Holdings Bhd (MAHB) on the measures to be taken to address the issue.
"We request MAHB to come out with medium to long-term plan and maintenance programme and to monitor the situation," she added.