1MDB misses deadline to close books, gets 6-month extension

KUALA LUMPUR — 1Malaysia Development Bhd (1MDB) has received a six-month extension to file its audited accounts with the Companies Commission of Malaysia as crucial documents have been seized by local investigators, said chief executive Arul Kanda Kandasamy.

The state-owned investment firm had until Sept 30 to submit a full set of its audited accounts for 2014, but has yet to even begin the auditing phase as the documents necessary for the audit remain in the possession of the authorities investigating the firm.

“It (the delay) can’t be helped,” Mr Arul was reported saying.

Similarly 1MDB’s subsidiaries Edra Global Energy Bhd and Real Estate Sdn Bhd will also be seeking for a month-long extension to file their respective annual audited accounts after missing the same deadline.

Mr Arul said its auditor Deloitte required original sets of documents to finalise the accounts but were not in possession of them as they had been confiscated during the July raid.

He was further quoted as saying that the accounts of the two subsidiaries were ready for submission, but were withheld by Deloitte that is seeking further clarification due to the allegations surrounding 1MDB.

“The accounts are ready. We just need to provide additional documentation,” he was quoted as saying.

Edra Global, which is mainly involved in power generation, is among 1MDB’s key assets. It also has two tracts of land slated for property development: the Tun Razak Exchange (TRX), a financial district in the making, and Bandar Malaysia which is a mixed development on the site of the former Sungai Besi air base.

1MDB is under investigation by various authorities in several countries, including here in Malaysia.

The allegations of corruption and mismanagement have also spilled over to Putrajaya, after US-based Wall Street Journal linked Prime Minister Najib Razak to US$700 million (S$1 billion) allegedly moved through entities connected to 1MDB.

According to The Edge, 1MDB suffered after tax losses of RM665.36 million (S$214.8 million) from RM4.26 billion in revenue for the financial year ended March 31, 2014 (FY14).

According to the company’s annual report for FY14, 1MDB’s long-term borrowings ballooned to RM33.5 billion, up about RM7.2 billion or some 27 per cent from RM26.3 billion in FY13.

As at end-March last year, 1MDB had cash and bank balances of RM3.8 billion, down 42 per cent from RM6.7 billion a year ago.

The investigation on 1MDB is ongoing. MALAY MAIL ONLINE