By KINIBIZ
Controversial Putrajaya-owned company 1Malaysia Development Berhad (1MDB) has pledged cooperation with the Auditor-General in light of the prime minister’s request for the latter to verify its accounts.
In a recent statement, the self-styled strategic development company said it welcomes the prime minister’s request, repeating its stand that criticism direct at it is politically motivated.
“These are deliberately coordinated attempts to undermine the company by spreading unsubstantiated allegations and speculation, which in turn could potentially harm the economy,” said 1MDB. “We will cooperate fully with the Auditor-General and hope that the outcome of his findings put to rest recent speculation.”
Last week prime minister Najib Abdul Razak, who chairs 1MDB’s advisory board, instructed the Auditor-General to independently verify 1MDB’s accounts and said the report will then be passed to the Public Accounts Committee for transparent inspection.
“If any wrongdoing is proven, the law will be enforced without exception,” Najib said in the statement.
On the same day however the Cabinet stated that there had been no wrongdoing at 1MDB after listening to a briefing by the company and Deloitte, its auditor.
“Cabinet expressed confidence that no wrongdoing has been committed within 1MDB, and their desire for the company to be allowed to implement the proposed outcomes of its strategic review,” said the Prime Minister’s Office (PMO) in a statement.
Ahmad Zahid Hamidi
Among others home minister Ahmad Zahid Hamidi had also leapt to 1MDB’s defence, joining the chorus saying that the criticism directed towards the outfit is politically motivated.
“Any attack on the 1MDB represents a form of attack on the country and they must be responsible for each false accusation and slander on the 1MDB,” said Zahid as reported by Bernama.
Second Finance Minister Ahmad Husni Hanadzlah also defended the Ministry of Finance-owned company, saying it is run in line with its objectives.
For the 2014 financial year ended March 31, 2014 (FY14) 1MDB posted its first full-year loss in four years as fair value gain from revaluing its property assets were insufficient to offset higher expenses and borrowings costs.
According to 1MDB’s audited annual financial statements, the fund posted RM669.5 million in pre-tax losses in FY14 from RM4.26 billion in revenue compared to pre-tax profits of RM877.6 million in FY13 from RM2.59 billion revenue.
However its FY13 pre-tax profits were propped up by fair value gains of investment property revaluation that amounted to RM2.73 billion, meaning 1MDB actually saw RM1.85 billion in actual losses that financial year.
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