From FMT Reporters

The documents shown to the company’s auditors may prove on hindsight to be fraudulent or manipulated.

KUALA LUMPUR: Petaling Jaya Utara MP Tony Pua wants Deloitte, the 1MDB auditors, to review the documents shown to them. “They were so sufficiently satisfied as to sign off the company’s accounts so readily.”
“These documents, shown to them, may prove on hindsight to be fraudulent or manipulated.”
In that case, he urged, they must immediately file police reports to clear their name and ensure that the crooks are investigated.
Pua, who is also DAP National Publicity Secretary, was explaining that it has since occurred to him that the 1MDB Financial Statements for the year ending 31 March 2014 were signed off by Deloitte coincidentally on 4 November 2014.
“That’s when 1MDB Global Investment Limited (1MDB GIL) also made a payment of USD222 million to Aabar BVI.”
At that point in time, he recalled, there was increasing concern over 1MDB’s USD2.318 billion investment in an obscure investment fund based in the Cayman Islands.
The Board of Directors minutes have shown that the Management was repeatedly instructed throughout 2014 to redeem the investment and repatriate the proceeds back to Malaysia, he added. “The company was under immense pressure.”
“The authenticity of the investment was being publicly questioned.”
Based on the testimony of Deloitte to the Public Accounts Committee (PAC), noted the MP, the auditors were particularly insistent that 1MDB was able to redeem most, if not all of the Caymans investment. “That was before signing off the much-delayed statements which were already past due.”
The accounts were finally signed off by Deloitte when 1MDB was able to “show” the auditors that USD1.22 billion had been redeemed, continued Pua. “The money was however, not repatriated to Malaysia.”
He cited the March 2014 Financial Statements which read, “as at the date of this report (4 November 2014), the amounts received from the redemption of investments of USD1.22 billion… have been substantially utilised for the purposes of debt interest payment, working capital and payments to Aabar as refundable deposits…”
Based on the 1MDB GIL banking transactions that Sarawak Report (SR) exposed two days ago, coincidentally the subsidiary company paid USD1.22 billion to Aabar BVI by 4 November 2014.
Hence, he charged, the most likely reason why 1MDB GIL made these mysterious unexplained payments to Aabar BVI has become clear. “The transactions were meant to hoodwink Deloitte into accepting that all the funds purportedly ‘received’ from the Cayman Islands, amounting to USD1.22 billion, had pretty much been immediately used to pay Aabar BVI.”
The catch: the money used to pay Aabar BVI did not come from the controversial Caymans investment, but from 1MDB’s own funds in its wholly-owned subsidiary, 1MDB GIL.
Unfortunately, lamented Pua, Deloitte was sufficiently cheated by the 1MDB crooks to sign off the accounts so readily.
The MP was pointing out that questions raised in his statement on Monday did not elicit any response from 1MDB Chief Arul Kanda Kandasamy.
When SR exposed the banking records of 1MDB GIL, which paid USD1.279 billion to the fraudulent Aabar Investment PJS Limited (Aabar BVI) between 12 September to 14 November 2014, he reiterated, many questions were raised.
Did 1MDB GIL pay USD1.279 billion to Aabar BVI to bluff Deloitte that the sums redeemed from 1MDB’s Cayman Island investments were ‘received’?
Why did 1MDB GIL pay Aabar BVI the money even though there were no business transactions, agreements or dealings between the two entities?
Why weren’t these fund transfers disclosed and explained during Arul Kanda’s testimonies before the PAC?

IMAGE: tony-pua-deloitte-1mdb-1

For more on this story go to: http://www.freemalaysiatoday.com/category/nation/2016/07/13/pua-deloitte-can-lodge-police-report-on-1mdb/

See also related iNews Cayman story published July 4 3016 “Ipic denies guaranteeing 1MDB’s Cayman investments” with links to others at: http://www.ieyenews.com/wordpress/ipic-denies-guaranteeing-1mdbs-cayman-investments/