1MDB LOOKS
FOR NEW AUDITOR
1MALAYSIA Development Bhd (1MDB) said its 2013 and 2014 audited financial statements should no longer be relied on by any party, pending a civil case filed by the United States Department of Justice (DOJ) to be determined in court.
In a statement yesterday, the strategic investment company said this was a precautionary measure.
“The board remains confident that no wrongdoing has been committed by 1MDB and that past audited financial statements show a true and fair view of the company’s affairs at the relevant points in time,” it said.
On July 20, US Attorney-General Loretta E. Lynch, accompanied by top US officials, told a press conference that the DOJ had filed suits to seize over US$1 billion (RM4.06 billion) in assets, which it said were the result of US$3.5 billion misappropriated from 1MDB.
According to her, the US$1 billion in assets were just a portion of the money that was stolen from 1MDB and laundered into American institutions in violation of US law.
IMDB said it would appoint a new auditor to replace Deloitte, which notified the firm of its intention to resign on Feb 26.
Until a new auditor is appointed, Deloitte will remain as 1MDB’s auditor, including for 1MDB subsidiaries TRX City Sdn Bhd, Bandar Malaysia Sdn Bhd and Edra Bhd, the firm said.