A PRELIMINARY audit report by PricewaterhouseCoopers (PwC) revealed that scandal-plagued state fund 1Malaysia Development Bhd (1MDB) failed to comply with basic good corporate practices, said Finance Minister Lim Guan Eng. 

Lim said the findings were disclosed to the government in a meeting with the auditors at Parliament today. 

“We had a meeting and of course we are shocked again by the preliminary audit report submitted by PwC on 1MDB.

“It shows the failure of the previous management to comply with basic good corporate practices. 

“The report said basic good corporate governance and management principles were not complied with,” he said in a press conference at the Parliament lobby.

Lim said the PwC’s final report would be publicly accessible.

“People have the right to know; let us get this done properly first as this is a preliminary report.”

In January last year, former prime minister Najib Razak had admitted there were clear lapses in the corporate governance of 1MDB.e

Najib, who established 1MDB and served as the advisory board chairman, was charged last month with misusing his position as a government official to receive a RM42 million bribe as inducement to provide a sovereign guarantee on behalf of the Malaysian government for a RM4 billion loan from the Retirement Fund Inc (KWAP) to SRC International Sdn Bhd.

Najib also faces three counts of criminal breach of trust in his capacity as prime minister, finance minister and SRC International advisor emeritus. SRC International was formerly a subsidiary of 1MDB.

On the ministry’s civil suit to claim RM2.5 million paid to former 1MDB chief executive Arul Kanda Kandasamy, Lim said the attorney-general had agreed to pursue the case. 

“I have spoken to the AG, he is in full agreement that we should pursue this case.” – August 6, 2018.