1MDB looking for a new auditor

PETALING JAYA: The board of directors of 1Malaysia Development Bhd (1MDB) said it is replacing the state-owned strategic development fund's auditor and has advised against relying on its 2013 and 2014 financial statements pending findings of a court of law in the United States.
1MDB's board consists of Treasury secretary-general Tan Sri Irwan Serigar Abdullah, Prokhas Sdn Bhd COO Datuk Kamal Mohd Ali and chief secretary to the government's senior private secretary Datuk Norazaman Ayob.
1MDB said its announcement was based on certain alleged facts of the civil forfeiture complaint filed by the US attorney general on July 20, 2016.
In a statement issued late yesterday evening, the 1MDB board called the advice a precautionary measure, despite being confident that no wrongdoing has been committed by 1MDB, and reiterating 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," it said.
On July 20, 2016, the US attorney general announced that the Department of Justice filed a civil forfeiture complaint against certain entities and individuals and contemporaneously filed related actions seeking the civil forfeiture of certain assets held in the names of these parties.
Meanwhile, 1MDB which is yet to file its audited accounts of the financial year ended March 31, 2015, said its auditor Deloitte had notified 1MDB of its intention to resign on Feb 26, 2016.
1MDB has until Sept 30, 2016 to file its accounts with the Companies Commission of Malaysia.
"The board takes this opportunity to highlight it is 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," it said.
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.