1MDB not forthcoming in providing documents for AG audit

 1Malaysia Development Bhd (1MDB) has not been forthcoming in providing documents requested by the Auditor-General for auditing, said Public Accounts Committee chairman Nur Jazlan Mohamed on July 9, 2015.
1Malaysia Development Bhd (1MDB) has not been forthcoming in providing documents requested by the Auditor-General for auditing, said Public Accounts Committee chairman Nur Jazlan Mohamed on July 9, 2015. PHOTO: AFP

KUALA LUMPUR - Debt-ridden state investor 1Malaysia Development Berhad (1MDB) has not been forthcoming in providing documents requested by the National Audit Department that are deemed integral to its investigations, the bipartisan parliamentary public accounts committee (PAC) revealed on Thursday.

PAC chairman Datuk NurJazlan Mohamed said the documents requested included bank statements and agreements.

"The Auditor-General Department has yet to get good cooperation from 1MDB. It has yet to receive several documentation for them to carry out their task," Mr Jazlan told a press conference.

"There were hindrances faced by the A-G as 1MDB was not forthcoming with them. I hope 1MDB can give them the information they are asking for to help them complete their investigation," he said.

He added that the committee was satisfied with how the National Audit Department is conducting its investigation. But when asked by reporters if there were any conclusions that could be drawn from the report so far, he said, it was still "too early" to do so as the department will take until the end of the year to complete their work.

The investigation has only involved past and present chief executives and board members of 1MDB, and officials from the Finance Ministry.

The PAC will question 1MDB chief executives and board of directors early next month.

Auditor-General (AG) Tan Sri Ambrin Buang tabled his department's initial report into 1MDB's finances to the PAC this morning.

Speaking to reporters on Thursday, Mr Ambrin said that he did not have the same powers as the special task force to obtain evidence, but his department would try to "get them from other sources".

"We are still trying to get the documents. If we cannot get their documents, we will try to get it from other sources. We are still waiting for some documents. They have been giving the documents...but we are still waiting for certain documents."

In response, 1MDB in a statement issued on Thursday, said "all documents in its possession have been submitted to the National Audit Department." 

"As the interim report has not yet been shared with 1MDB, we are unable to comment on the PAC chairman’s statement that certain documents appear to have not been submitted. As requested by the PAC chairman, we will immediately contact the National Audit Department to seek clarity on which documents the PAC chairman is referring to." 

1MDB has been mired in controversies over its dealings and have amassed debt of RM42 billion in just under six years. The personal briefing by the AG which began at 10am was conducted behind closed doors. The AG has yet to decide on making the interim report public. The PAC is also conducting its own investigation into the debt-ridden state investment fund.

In a report last Friday, the Wall Street Journal (WSJ) claimed that a money trail showed that US700 million (S$946 million) were allegedly moved from 1MDB to Prime Minister Datuk Seri Najib Razak's private accounts. The Prime Minister has denied the allegations and his lawyers have sent a letter to the publisher of WSJ on its position regarding the allegations.

The 1MDB's office was raided on Wednesday by the police as part of an investigation by a special muli-agency task force.