1MDB, Deloitte summoned before Cabinet

PETALING JAYA: Prime Minister Datuk Seri Najib Abdul Razak today summoned the 1Malaysia Development Bhd (1MDB) management and its auditors, Deloitte, before the Cabinet to probe recent allegations directed at the company.
According to a statement from the Prime Minister's Office (PMO), 1MDB provided a briefing on its current situation and responded to questions raised by the Cabinet including Najib and his deputy Tan Sri Muhyiddin Yassin.
Meanwhile, Deloitte provided the Cabinet an overview of its engagement with 1MDB and confirmed that the firm had audited and verified the company's accounts.
The statement said the Cabinet was told that recent allegations directed at 1MDB related to transactions undertaken by third parties such as Petrosaudi and not 1MDB.
It added that the relevant investments of 1MDB have been returned in full with significant audited profits.
It went on to say that having received clarifications from the company and Deloitte, the Cabinet expressed confidence that no wrong doing has been committed by 1MDB.
The Cabinet also assented to the company implementing the proposed outcomes of its strategic overview.
The statement also quoted Najib as saying that "if any wrongdoing is proven, the law will be enforced without exception".
The PMO said also Najib informed the Cabinet that he has instructed the Auditor-General to independently verify 1MDB's accounts.
The Auditor-General's report will be passed for transparent inspection to the Public Accounts Committee, which is fully bipartisan and reflects Parliament's composition.
Meanwhile, 1MDB in a statement said it will cooperate fully with the Auditor-General.
"It is clear that the attacks being directed at 1MDB are politically motivated. These are deliberately coordinated attempts to undermine the company by spreading unsubstantiated allegations and speculation, which in turn could potentially harm the economy," said its president and group executive director Arul Kanda.
In light of this, Arul said, 1MDB welcomes the prime minister's request for the Auditor-General to verify 1MDB's accounts, which have been audited by Deloitte, one of the world's leading firms.
"We will cooperate fully with the Auditor-General and hope that the outcome of his findings put to rest recent speculation," it added.