Wednesday, June 17, 2015

PAC rebuffs minister on 1MDB audit sequence

3:44PM Jun 16, 2015
By Kow Gah Chie
Public Accounts Committee (PAC) deputy chairperson Tan Seng Giaw has come out to contradict the Finance Ministry's contention that the audit of 1MDB was not done as the auditors were engaged  in the audit of its subsidiary Edra Global Energy.

"I do not concur with Finance Minister II Ahmad Husni Hanadzlah that the holding company (1MDB) will be the last to be audited by international firm Deloitte," said Tan today.

"The audit process should begin with the holding company first. The procedure is wrong," he said at a press conference in Parliament.

Husni (photo) told the House yesterday that Deloitte had to startwith Edra's auditing first as 1MDB planned to monetise the subsidiary.

After Edra,  then Deloitte said it would audit 1MDB's  property entities before attending to the holding company itself.

At the same press conference, PAC chairperson Nur Jazlan Mohamed said the Finance Ministry should order the audit of 1MDB as promptly as possible.

He pointed out that even a public-listed company has its audit done by end of the year before the the financial year-end deadline.

A government-linked company should follow an even stricter standard, added the Pulai MP.

He told Finance Ministry to order Deloitte, which has yet to be officially appointed, to start the audit of the  troubled GLC as soon as possible.

'Buying time'

Tony Pua (DAP-Petaling Jaya Utara) added the audit should be conducted concurrently. "It make no sense to start with a subsidiary.

"This was purposely done to delay the audit to buy more time for 1MDB to cover up the debts and suspicious transactions", he alleged.

Following the latest development, Deloitte may not be able to complete the financial statement for the financial year ending March 31, 2015 in September, noted Pua (photo).

PAC had taken the Finance Ministry to task for its failure to prepare the financial statement of 1MDB.

The lack of financial statement for the financial year ending March 2015 leaves a 15-month gap in PAC’s investigation, since many events may have transpired during this period.

“This is a hindrance to PAC, but not a deal-killer,”  Nur Jazlan said last Thursday.

Without 1MDB's financial statement, PAC was hard put to pin-point which party was responsible, he said.
~ Malaysiakini

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