Deloitte Malaysia explains stand on 1MDB accounts

KUALA LUMPUR: Deloitte Malaysia on Tuesday issued a statement following the US Department of Justice civil forfeiture complaint linked to 1Malaysia Development Bhd. Below is the statement in full.
On July 20 2016, the Office of the Attorney General of the United States of America 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 numerous assets held in the names of these parties (complaint). According to the complaint filed, this is a civil action to forfeit assets involved in and traceable to an international conspiracy to launder money misappropriated from 1MDB.
The complaint contains information, which, if known at the time of the 2013 and 2014 audits of 1MDB, would have impacted the financial statements and affected the audit reports and, accordingly, those audit reports issued by Deloitte Malaysia dated March 28, 2014 and Nov 5, 2014 respectively in connection with the 2013 and 2014 financial statements of 1MDB should no longer be relied upon.

Resignation as auditors
On Feb 26, 2016, Deloitte Malaysia had tendered its notice of resignation as auditor of 1MDB to 1MDB's Board of Directors and had lodged the notice of resignation with the Companies Commission of Malaysia. Since that date 1MDB has advised that it was focused on finding a new auditor, but has yet to inform Deloitte Malaysia of the appointment of any new auditor.