By Chan Quan Min
1Malaysia Development Bhd (1MDB) has not lodged its annual report with the authorities for the financial year ended March 2014 and could miss a month-end deadline under to company law.
The last available annual report, for the financial year ended March 2013, was submitted a year late in early-April this year after the state-owned strategic investment fund swapped auditors, going from KPMG to Deloitte.
Checks with the Companies Commission of Malaysia (CCM) made yesterday revealed that 1MDB has not yet submitted their annual report for the financial year ended March 2014.
Section 169 of the Companies Act, 1965 requires company directors to file an audited financial statement on an annual basis and not more than six months after the close of the financial year.
It is not immediately clear if 1MDB has sought an extension to lodge the report with CCM or if the company has held its annual general meeting.
1MDB’s annual reports allow the public, for a small fee and a trek to the nearest CCM office, to scrutinise the financial dealings of the elusive state investment fund. CCM’s online system does not provide a complete copy of company lodged documents.
The last available annual report revealed that 1MDB would have posted losses if not for RM2.7 billion in land revaluation gains.
It also revealed that the strategic investment fund is sitting on a cash-pile of RM23.6 billion against even larger borrowings of RM36.3 billion from various loans and government-guaranteed bond issues.
By allegedly mispricing bonds to provide very attractive yield, 1MDB could have lost out on RM4 billion, according to calculations by KiniBiz.
To date, the strategic investment fund has made three major purchases of power-generation facilities. The flagship developments of Tun Razak Exchange (TRX) and Bandar Malaysia, projected to cost more than Putrajaya, are still largely in the planning stages.
Some of 1MDB’s suspect dealings are explained in further detail in the following KiniBiz issue pieces:
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