Pakatan: 1MDB account 'manipulated' to show profit
S Pathmawathy
5:38PM Jun 28, 2012
1Malaysia Development Berhad's (1MDB) accounts are "not as sound" as made out to be, claimed three opposition members of the Public Accounts Committee (PAC).
This is because the profits shown in the balance sheet submitted by the government's strategic investment arm had been propped up by the re-evaluation of parcels of prime land as well as the injection of loans, said Petaling Jaya Utara DAP MP Tony Pua (right).
At a press conference today, he said PAC chairperson Azmi Khalid claiming that the company is financially sound was an "unfair assessment".
Citing the company's statement of cash flow from March 2011, Pua noted that 1MDB's profits of RM544 million that year were paper gains.
As for the profits recorded in 2011, they were from the evaluation of 1MDB's property from RM194 million to a whopping RM827 million bringing the total value of 1MDB's property to RM1.02 billion, a 426 percent jump.
Record balance from loan
Pua said the parcels of land included government-owned plots in Jalan Cochrane and Jalan Imbi, were transferred to the company for the development of the Kuala Lumpur International Financial District (KLIFD) at a "much lower" cost.
He added that the company's cash flow also showed that the record[ed] balance was due a RM 2.06 billion loan.
"If it was not for the borrowing, the cash flow would have been negative, resulting in a loss for the financial year 2011.
"The reality is that 1MDB's accounts are manipulated to (reflect profit). It is not fair to conclude that the accounts are in order. Let's not assume that their cash flow is healthy," he said.
Selayang PKR parliamentarian William Leong reminded Azmi that it is wrong to come to that conclusion when 1MDB had refused to furnish six out of seven documents requested by the PAC.
The sole document furnished by the investment arm to PAC was its financial balance sheet for the year financial ended 2011.
"Once when we have everything required then we can conclude," said Leong with concurrence coming from Tumpat PAS MP Kamaruddin Jaffar (left).
[...]
In the past, when the PAC was probing the Port Klang Free Zone (PKFZ), every document sought was handed over to the parliamentary committee, he said.
"Why should it be any different with 1MDB?" he asked.
Kamaruddin added that they had expressed their concerns on the issue at yesterday's PAC's meeting and the Auditor-General's office has been asked to look into the company finances.
9 comments:
Tony, a loan is not cash flow. Its cash balance or financing. BIG DIFFERENCE. So either there is fraud or someone does not know accounting..
Tony
You are right.1MDB is shame co.They lost two billion in their bet on deivitive product sold by Charterd Bank.They lost money 1.7 billion buting three Taib Mahmud Family co with the recommendation by J Lo.Who is this Petro Saudi co.The company was ncroperated in Scycheel Island with us 100 capital.
They took another 2 billion loan from Pension Fund (KWAP) and inverst the money buying two coal mine,one in Mongolia and other in Kalimantan.
They bought Ananda Power Plant. For 8.5 billion rgt and borrow all the money from Maybank.Ananda had to pay somebody 600 m as donation.
This is the biggest scandal we ever had in Najib era.
Their accountang EnY refuse to sign the account and they get Delloite to sign it.
May we know who their external auditors are, YB?
Thank you!
err watch it YB, might kena another defamation suit again.
The information that cash proceeds are operating receipts, revenue or turnover is strange. It might suggest other potentially serious matters.
The external auditors could not have duly let this pass as that.
when they do such a revaluation, what is the basis? also, does this mean 1MDB gonna sell these land at such prices? Golly, that woul push up property prices more. Ah Jib Kor contributing to inflation?
But they have TO SELL first whatever, properties to REALIZE the profits.
Instead asking ROC to do SUARAM's accounts why not send ROC to "help" out 1MDB?
I can't find the financial statements in 1mdb website. Can the Financial be posted in websites for public view ? Without that we could not determine the black & white or right or wrong of the subject matters.
Profit is not equal cash and not equal to loan and revaluation could not be regarded as profit either so please clarify. It sound really confusing.
UP41,
Ya lah Financial Report IS NOT on the web site!
Blatant evidence of fraud!
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