KUALA LUMPUR: Auditors KPMG have notified Malaysia’s scandal-hit state fund 1Malaysia Development Berhad (1MDB) that its audits for three years do not provide a “true and fair” assessment of the company, the fund said on Tuesday.
1MDB, which faces money-laundering probes in at least six countries, including the United States, was founded by former prime minister Najib Razak, who suffered a stunning election defeat by Prime Minister Mahathir Mohamad last month.
In reopening an investigation into the 1MDB case, Mahathir has vowed to bring back billions of dollars allegedly siphoned out of the fund and punish those responsible.
“The 1MDB financial statements for the financial years ending March 2010, 2011 and 2012 audited by KPMG do not provide a true and fair assessment of the company,” the audit firm said in a letter dated June 8, 1MDB said.
It advised 1MDB to “immediately take all necessary steps to prevent any further or future reliance” on the three audit reports, the fund said in a statement.
“According to KPMG, they reached the above decision after going through the recently declassified auditor general’s report on 1MDB and other relevant documents that were withheld from them by the previous management,” 1MDB added.
KPMG also told 1MDB that if the documents had been disclosed to the auditors, the audit firm believed the information “would have materially impacted the financial statements and the relevant audit reports”.
Officials at KPMG in Malaysia did not immediately respond to telephone calls and emails from Reuters to seek comment.
On May 15, Malaysia declassified the government audit of 1MDB, which showed that senior fund officials withheld information from its board and took some decisions with said out the board’s approval.
Mahathir has said the government seeks to charge Najib for embezzlement and bribery with government money. Separately, Najib said he did not benefit from 1MDB, and should not be blamed for the scandal.
Najib has said his advisers and the management and board of 1MDB had wrongly kept the alleged embezzlement of funds a secret from him.
1MDB has become the biggest case pursued by the US Department of Justice under its anti-kleptocracy program.
The DoJ has alleged in lawsuits that more than $4.5 billion from 1MDB was laundered through a complex web of transactions and shell companies, of which $681 million ended in Najib’s bank account.
Najib has said the money in his account was donations from Saudi Arabia, most of which he returned.
In a separate statement, 1MDB announced the appointment of a new chairman, Asri Hamidon, a Malaysian treasury official who oversees government investment. It has also set up a new executive committee to manage daily operations, it added.
Malaysia’s 1MDB audits from 2010 to 2012 did not give ‘true and fair’ assessment, KPMG says
Malaysia’s 1MDB audits from 2010 to 2012 did not give ‘true and fair’ assessment, KPMG says
Saudi Arabia’s cultural sector is a new economic engine between Riyadh and Paris, says ambassador
RIYADH: Culture has become a fundamental pillar in bilateral relations between France and Saudi Arabia, according to the French Ambassador to the Kingdom, Patrick Maisonnave.
Maisonnave noted its connection to the entertainment and tourism sectors, which makes it a new engine for economic cooperation between Riyadh and Paris.
He told Al-Eqtisadiah during the opening ceremony of La Fabrique in the Jax district of Diriyah that cultural cooperation with Saudi Arabia is an important element for its attractiveness in the coming decades.
La Fabrique is a space dedicated to artistic creativity and cultural exchange, launched as part of a partnership between the Riyadh Art program and the French Institute in Riyadh.
Running from Jan. 22 until Feb 14, the initiative will provide an open workspace that allows artists to develop and work on their ideas within a collaborative framework.
Launching La Fabrique as a space dedicated to artistic creativity
The ambassador highlighted that the transformation journey in the Kingdom under Vision 2030 has contributed to the emergence of a new generation of young artists and creators, alongside a growing desire in Saudi society to connect with culture and to embrace what is happening globally.
He affirmed that the relationship between the two countries is “profound, even cultural par excellence,” with interest from the Saudi side in French culture, matched by increasing interest from the French public and cultural institutions unfolding in the Kingdom.
Latest estimates indicate that the culture-based economy represents about 2.3 percent of France’s gross domestic product, equivalent to more than 90 billion euros ($106.4 billion) in annual revenues, according to government data. The sector directly employs more than 600,000 people, making it one of the largest job-creating sectors in the fields of creativity, publishing, cinema, and visual arts.
Saudi Arabia benefiting from French experience in the cultural field
Maisonnave explained that France possesses established cultural institutions, while Saudi Arabia is building a strong cultural sector, which opens the door for cooperation opportunities.
This comes as an extension of the signing of 10 major cultural agreements a year ago between French and Saudi institutions, aiming to enhance cooperation and transfer French expertise and knowledge to contribute to the development of the cultural system in the Kingdom.
He added that experiences like La Fabrique provide an opportunity to meet the new generation of Saudi creators, who have expressed interest in connecting with French institutions and artists in Paris and France.
La Fabrique encompasses a space for multiple contemporary artistic practices, including performance arts, digital and interactive arts, photography, music, and cinema, while providing the public with an opportunity to witness the stages of producing artistic works and interact with the creative process.
