Najib’s son not involved in Deloitte’s 1MDB audit, PAC says

KUALA LUMPUR, June 10 — The son of Datuk Seri Najib Razak was not a part of the Deloitte & Co team that audited 1Malaysia Development Bhd (1MDB), Parliament’s Public Accounts Committee (PAC) said when clearing the firm of an alleged conflict of interest.

Committee chairman Datuk Nur Jazlan Mohamed said the prime minister’s son, Nizar Najib, works in a different department - the firm’s financial advisory services (FAS) – which meant that he would have no influence in the auditing process.

“He is not in the audit team… he is in the FAS and he’s been there since 2004,” the Pulai MP told reporters after meeting with Deloitte officials for four hours in Parliament here.

Nur Jazlan was asked if PAC had questioned Deloitte on the issue.

“Of course,” he said in response.

Opposition leaders have among others cited Deloitte’s link with Najib through his son to question the results of Deloitte’s audit of 1MDB audit.

Earlier today, the PAC said Deloitte insisted that its March 2014 audit was legitimate although the committee added it was too early to verify the assertion as it needed to call others involved with 1MDB to testify before making any conclusion.

Deloitte is now the subject of investigation by the Malaysian Institute of Accountants following a complaint lodged by PAC member and opposition MP Tony Pua.

In his complaint to MIA, the Petaling Jaya Utara MP cited the International Standards on Auditing, which he pointed out stipulates that auditors must conduct their job with “professional scepticism”.

Pua had previously slammed Deloitte for not being thorough in their 1MDB audit, pointing out that they had reported that the strategic investment firm had sufficient liquidity to cover its cash flow needs the same month when 1MDB encountered cash flow problems.

Nur Jazlan said today PAC cannot push for more answers on the 1MDB’s latest account as Deloitte has not been instructed to audit the fund’s accounts as yet.

When asked when can the public expect to see the latest audit, Nur Jazlan said it all depended on the Ministry of Finance.