The Public Accounts Committee (PAC) has reprimanded the Finance Ministry for its failure to order the audit of 1MDB's latest financial statement.
"As 1MDB's shareholder, the ministry should take the responsibility to start the audit," PAC chairperson Nur Jazlan Mohamed told reporters in Parliament today.
Nur Jazlan (photo) said the lack of 1MDB's latest financial statement for the financial year ending March 2015, leaves a 15-month gap for PAC's investigation, since many events may have transpired during this period.
"This is a hindrance to PAC, but not a deal-killer," he said, adding that the committee has pushed the ministry for the audit report.
International audit firm Deloitte told the PAC hearing yesterday that it has yet to be instructed to audit the accounts.
"An importanct GLC like 1MDB should have its account audited (as soon as possible). A public listed company normally have its account audited by the end of the year, so the financial statement will be ready as soon as the financial year end," Nur Jazlan said.
'Show us the proof'
He also expressed PAC's dissatisfaction over Deloitte's explanation stating that there wasn't any "going concern" on 1MDB as of March 31, 2014.
A going concern is a business that functions without the threat of liquidation for the foreseeable future, usually regarded as at least within 12 months.
Nur Jazlan said it was among the many reasons which contributed to PAC's dissatisfaction.
"They said 1MDB was a going concern based on the IPO and assets can be turned into cash. We asked them, 'show us the proof'," he said.
The audit firm only managed to explain it yesterday, Nur Jazlan added.
"Without the latest statement, we will not know what has transpired after that. We can't pinpoint who should be responsible," he said.
Given the fact that 1MDB's financial statement at the year end of Mac 31, 2014 only came out last September, the Pulai MP said he has no idea how soon the latest statement can be completed.
Despite the hindrance, PAC will continue its hearing, he said.
"We will continue with the four witnesses we have identified until the end of August. After that we will decide who to call next," Nur Jazlan added.