1MDB Audited Accounts & Auditor Update
On 20 July 2016, the Office of the Attorney General of the United States of America announced that the Department of Justice filed a civil forfeiture complaint against certain entities and individuals and contemporaneously filed related actions seeking the civil forfeiture of certain assets held in the names of these parties (“Complaint”).
The Board of Directors of 1MDB has reviewed and deliberated the contents of the Complaint. Whilst the Board remains confident that no wrongdoing has been committed by 1MDB and that the past audited financial statements continue to show a true and fair view of the company’s affairs at the relevant points in time, the Board has decided that, as a precautionary measure, the 2013 and 2014 audited financial statements of 1MDB should no longer be relied on by any party, pending final and conclusive determination by a court of law of certain alleged facts, as described in the Complaint.
The Board takes this opportunity to highlight it is committed to finding a new auditor for 1MDB, to replace Deloitte, which has previously notified 1MDB of its intention to resign on 26 February 2016. Until a new auditor is appointed, Deloitte will remain as auditor on record. 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.