KPMG managing partner Datuk Johan Idris is pictured at the Kuala Lumpur High Court April 21, 2022. – Picture by Firdaus Latif
KUALA LUMPUR, April 21 — Former finance minister Datuk Seri Najib Razak had instructed audit firm KPMG to complete and sign off on its audit of 1Malaysia Development Berhad’s (1MDB) 2013 financial statements within two weeks, even as KPMG had yet to receive crucial documents and information on a US$2.318 billion purported investment by 1MDB, the High Court heard today.
KPMG’s managing partner Datuk Johan Idris said this while testifying as the 14th prosecution witness in Najib’s trial over the alleged misappropriation of more than RM2 billion of 1MDB funds.
Johan was today recounting what had taken place during a meeting on the night of December 15, 2013 at Najib’s private residence in Taman Duta. The 45-minute-long meeting was between KPMG with Johan as its sole representative, 1MDB and Najib himself.
At that time, KPMG had yet to sign off on the audit for 1MDB’s financial statements for the financial year ending March 31, 2013, as 1MDB had yet to provide the information that KPMG had been asking for since April 2013.
Based on minutes of the meeting that Johan had typed out himself, he noted that Najib had asked for KPMG to sign the audit by December 31, 2013.
“Before the meeting ended, Datuk Seri Najib stated that he wished to see the 1MDB account signed by KPMG before or on December 31, 2013, but I did not give any response to him.
“I also did not understand why 1MDB refused to disclose information about the underlying assets that were said to be confidential. Furthermore, there were also no supporting documents presented to me at that time to show that information is confidential,” he told the High Court today.
Deputy public prosecutor Deepa Nair Thevaharan then asked “You said Datuk Seri Najib wanted to see the account signed before or on December 31, 2013. What was his reaction at that time?”
Johan, who was testifying in Malay, then said: “Reaksi beliau macam seolah-olah arahan kepada saya.” (His reaction was as if it was an order to me.)
Johan however explained that KPMG did not sign off on the 2013 financial statement for 1MDB in the end, as the information required was still not provided to the auditors.
Johan said 1MDB’s sole shareholder Minister of Finance (Incorporated) (MoF Inc) on December 31, 2013 terminated KPMG as the auditor for 1MDB with immediate effect, and replaced it with Deloitte KassimChan.
“But KPMG did not know what was the main reason that KPMG’s services as auditor were terminated,” he said today.
MoF Inc is owned by the Finance Ministry, and Najib as the then finance minister was the representative for 1MDB’s shareholder MoF Inc.
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