KUALA LUMPUR: Deloitte Malaysia has notified 1Malaysia Development Bhd (1MDB) of its intention to resign as the embattled state fund’s auditor, and the 1MDB board is now looking for a new auditor.
“Until a new auditor is appointed, Deloitte will remain as auditor on record,” said 1MDB in a statement yesterday.
“The board appreciates the professionalism displayed by Deloitte to date and highlights that Deloitte will continue to audit key subsidiaries of 1MDB, including but not limited to TRX City Sdn Bhd (formerly known as 1MDB Real Estate Sdn Bhd), Bandar Malaysia Sdn Bhd and Edra Bhd,” it added.
1MDB disclosed that Deloitte had notified it of its intention to resign on Feb 26, but the fund did not say why it making the announcement only now.
However, Deloitte in a separate statement referred to the civil forfeiture complaint filed by the United States Department of Justice (DoJ) on July 20.
It said the complaint contains information, which, if known at the time of the 2013 and 2014 audits of 1MDB, would have impacted the financial statements and affected the audit reports.
Accordingly, it said, the audit reports issued by Deloitte in connection with the 2013 and 2014 financial statements of 1MDB should no longer be relied upon. Read more