Najib Razak / Tun Dr Mahathir / Umno & Barisan Nasional

All of us are perplexed by Arul Kanda and 1MDB

NAZIR RAZAK HAS BEEN VERY VOCAL IN THE APPARENT LACK OF GOVERNANCE IN 1MDB AND THE INCOMPETENCE OF ITS BOARD MEMBERS

NAZIR RAZAK HAS BEEN VERY VOCAL IN THE APPARENT LACK OF GOVERNANCE IN 1MDB AND THE INCOMPETENCE OF ITS BOARD MEMBERS

From The Star today:

Nazir Razak questions delay of 1MDB annual audit

PETALING JAYA: The delay of an audit for Government investment arm 1Malaysia Development Berhad’s (1MDB) financial year which ended in March this year is “perplexing” to CIMB chairman Nazir Tun Razak (pic).

“I am perplexed why your March 2015 audit has not even started? How is this allowed? Has standards of GLC governance dropped so low?” Nazir said in an Instagram post on Thursday night, accompanied by a graphic with the 1MDB logo.

On June 10, Public Accounts Committee (PAC) chairman Datuk Nur Jazlan Mohamed revealed that 1MDB’s financial year accounts, which ended in March this year, had yet to be audited.

Nazir, who is also the younger brother of Prime Minister Datuk Seri Najib Tun Razak, has been critical of 1MDB in the past, and had criticised 1MDB’s president and group executive director Arul Kanda Kandasamy as well as former CEO Datuk Shahrol Azral Ibrahim Halmi for not attending a PAC inquiry.

In fact, Nazir Razak may not only criticising Arul Kanda, he could also be criticising the Prime Minister cum-Finance Minister slash Advisor of 1MDB for not giving the green light for Deloitte to start auditing 1MDB.  It was reported yesterday:

The PAC found out at yesterday’s meeting that Putrajaya has yet to direct Deloitte to audit 1MDB’s accounts for the current financial year despite growing concerns over the state investor’s financial health.

In reiterating the need for 1MDB’s latest accounts to be audited quickly, Nur Jazlan said until the financials are completed and audited, it would be a hindrance to their ongoing investigation into the firm.

Is somebody still cooking something in the kitchen? Why hasn’t the audit started yet? It is impossible that the management accounts are not yet ready to be audited. It’s mid-June already. Are the employees in the accounts department of 1MDB on sabbatical leave since last Hari Raya?

Why is the Prime Minister actively withholding a proper governance procedure?

Tony Pua was also perplexed by what by the  self-confessed ‘professional’, Arul Kanda had to say about all this. The so called professional have made a reply to Tony on why the external audit has not yet started but that exposes the CEO to further embarrassment because it seems, Arul Kanda had missed the point.

The MP rebuked and chastised the under sieged CEO of 1MDB by giving him a lesson in logical thinking:

Arul Kanda’s denials about audit miss the point

KUALA LUMPUR: Petaling Jaya Utara MP Tony Pua, while commending Arul Kanda Kandasamy for his quick response, pointed out that the 1MDB Chief has completely missed the point that he was making on Deloitte Malaysia not being able to commence audit work on the company for the last financial year.

“His denial does not explain anything,” said Pua who is also DAP National Publicity Secretary. “Arul Kanda’s commendably immediate denial misses the point and was an attempted misdirection.”

“He should stop giving excuses and give his assurance to Malaysians that the statutory financial audit for the scandal-ridden 1MDB for the 31 March 2015 financial year-end will be completed by 30 September 2015 as required by law.

Arul Kanda in his denial, he lamented, said “the board and management of 1MDB met Deloitte as early as February 2015 to discuss commencement of an audit after the financial year-end of 31 March 2015.”

“We want to know about the controversial assets held in various overseas banks. We want to know what was the true debt situation in 1MDB and the extent of the company’s cash flow problems.”

Unfortunately, he said, “what we didn’t get from Arul Kanda was when the audit will actually commence. More worryingly, we would like to ask the President of 1MDB, why is it that since the discussion more than three months ago, the audit for 1MDB has not commenced.”

Arul Kanda claimed that “the audit of a major 1MDB subsidiary, Edra Global Energy Bhd, has already commenced and was well under way”, noted Pua.

“I asked about ‘the holding company, 1MDB, where all the controversy over its funds, cash flow problems and alleged misappropriations lie, but Arul Kanda tells us that the audit has commenced on its subsidiary.”

The commencement of audit work on Edra isn’t at all surprising, he added. “It was expected because the company was preparing for their initial public offering.”

Arul Kanda, Pua further noted, separately highlighted the fact that “1MDB is currently undergoing a thorough review and investigation of its accounts by the National Audit Department.”

“Let me state that the fact that the Auditor-General (A-G) was reviewing the past financial statements of 1MDB does not in any way justify the fact that the statutory audit for 1MDB has not commenced,” said Pua. “These are two different and independent processes which surely a multi-billion ringgit public-interest company cannot afford to neglect.”

In fact, he said, given that there was a parallel on-going A-G review, Deloitte should be invited to commence their audit earlier so as to provide the auditors with a longer lead-time to complete the report.

Arul Kanda have managed to make even Tony Pua sound smarter. And that is the quality we have among the people who are supposed to handle 1MDB.

Intelligent people will instantly know that if an audit has not yet started, then it has not yet started. There is no need to go around in a roundabout just to say something has started when clearly it hasn’t.

In normal audit practice, management accounts of all subsidiaries should have already been consolidated in the management accounts of the holding company by end of financial year. External auditors should have by now, sit in the audit room prepared by 1MDB HQ office and commence the audit (whether executing the ‘stat audit’ – a jargon for checking the legal corporate documents, or other preparatory process).

Again, it is the middle of June now. Their financial year ended 2.5 months ago. If they have to wait for the Edra Global Energy to be audited and the audit report to be signed, then there won’t be enough time for 1MDB’s audit report to be completed and signed to meet its September dateline. Arul Kanda was just saying something that does not make sense.

Only the most ignorant among us would believe his press statement.

From all the news above, it is without any doubt that not only 1MDB have failed in its corporate governance, it also gives so many excuses and idiotic responses, it is not presumptuous to say that there is a deliberate attempt to cover up wrong doings.

And to answer Nazir Razak’s ultimate question, the ultimate answer is, yes it has.

Today, Tun Dr Mahathir wrote his latest blogpost which summarises the history of 1MDB and its stupid business deals. We assume there will be another round of Falsely Answered Questions (FAQ) which will not answer anything. Get ready.

You might also want to read:

https://jebatmustdie.wordpress.com/2015/05/28/the-prime-minister-is-misleading-the-people-with-his-faq/

http://ffrreeddiiee.blogspot.com/2015/06/1mdb-or-jho-low.html

https://jebatmustdie.wordpress.com/2015/06/11/congratulations-arul-kanda-you-are-now-a-politician/

11 thoughts on “All of us are perplexed by Arul Kanda and 1MDB

  1. Sometimes it dawns on a a man that he isn’t cut out to manage sovereign wealth funds (swf). It doesn’t help when 1MDB is a pseudo-swf. That makes the personal requisites doubly tricky.
    If you can’t cook a decent nasi kandar, for heaven’s sake, don’t try to be chief chef at the mamak restoran. There are many other talents out there.

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  2. JMD,

    Previously, AK perplexed with the figure given by Tun M. Now, his turn get caught. Somebody else perplexed with his delay in conducting audit for 1MDB account. As malay saying goes “Telunjuk lurus kelingking berkait” sampai cucuk mata for his case.

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  3. it is sad that those that question the right questions, will be attacked. I thought najib was just bad but i really think that he is just stupid. In dictionaries of all languages, stupid should be explained by just putting a face of najib next to it. Nazir will be attacked and brandished with claims of wanting something but not getting. Tony pua will be ridiculed because he is chinese (dap is racist, chinese traders are scum) by likes of unspinners. Btw, i think (sorry if im wrong), someone in selamat pagi malaysia on rtm earlier this morning, didnt say Dr Mahathir’s name. He said instead: our ex pm from kedah initiated this movement. Was there a gag ban even on the old doc’s name?

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  4. We have clowns in 1MDB right from the Advisor who is also the PM until the CEO and this explains why RM 42 billion is missing in thin air. And the best part is these clowns are also “magicians” who can make money disappear and reappear in Jho Low’s account.

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  5. And the Lim Kok Wing, TV3 combo is every busy trying to divert attention elsewhere. Latest is “Proton’s failures”, desperately hoping that people would turn their attention elsewhere. At the very least, to put pressure on Mahathir, hoping that he will be busy talking about Proton. Somebody in the team had likely thought about “Attack is the best form of defence”, and feeling himself to be very smart.

    Mahathir didn’t even bother to address even a bit of TV3’s claims. And nobody else beyond the prepaid and postcard bloggers cared to pursue the non-issue. What a blow to LKW and TV3 – they have zero impact and influence on public opinion.

    And now here’s another headache for the PM and 1MDB – of the suspicious attempt to delay the auditing. Is it because some thieves need more time to cover their tracks?

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  6. In your face Najib!! You look more stupid when you are trying to ridicule Tun M. Hey Mr. PM, your position is a leader but the fact is you don’t have what it takes to become a leader. Cowardice!!

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  7. How do you conduct an audit when there are still auditors from auditor general at the office? Who gets precedent over documents? BNM wanted to investigate them too. They will send their auditors too. Will the room for three yeams of auditors.

    The answer is not in the rhetorics but the practicality. As for now, AG is determining the current financial position. Or shall we say verifying the mgmt account’s current position. Deloitte can wait as statutory reqt to submit annual account isn’t due yet. Surprise mazir does know that. Something fishy about nazir.

    I d rather focus on nazir and cimb. Maybank did better but cimb retrenching. Earlier they cancelled merger plan with mbsb. Something suspiciously wrong.

    It is like someone calling the other a liar and dishonest to cover his own emminent lie and dishonesty. The ball is in accuser court to prove disappearance of rm42 billion but he is trying to divert subject to legacy and rewriting his story. Smart coverup of the many mistakes in his story.

    He has lied so.much that it will blow open anytime. That is the real legacy that will be destroyed. His reputation.

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    • Are you the unofficial spokesperson for 1MDB? Or are you one of its staff? Based on the news above, AG is auditing the audited reports for 2014 while Deloitte should have started the 31/3/2015 financial year end audit. Are you an auditor? If you are one, there is no question as to the adequacy of rooms. We are sure Nazir knows everything about an audit because CIMB does engage external auditors.

      Actually, there is no need for you to defend 1MDB unless you are involved in it and know all what is really happening inside.

      Thank you.

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  8. Obsolete

    Boy you just invited me to open a can of worms.
    I agree with you that we should also focus on CIMB and the now aborted merger with RHB & MBSB. Perhaps asking Dato Yusof Annuar who was ex GS (he claimed he brokered the deal where 1MDB stupidly paid USD500mil of fees) now MD of Deutsche Bank what is the deal with that merger. Whose idea is it to merged those entities in the 1st place. Why? So Aabar can be ‘repaid’ for lending their name as a front to launder some money on behalf of someone? Pak Unta apparently didn’t make much money from being involved in 1MDB. You act in movie also must get paid right? So nak reward berterima kasih whatever la someone cooked up this merger plan.

    Oh while we are at it, pretty obvious Jay is the brains in the family. Jibby didn’t even finish his degree. Too busy dropping his pants. Hence we have a leader who can use his brains and need to get outsourcing done.

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