KPMG warned scandal-hit 1MDB fund not to rely on audit reports

Kuala Lumpur — KPMG, the audit firm for 1MDB, told the company not to rely on its reports over three years as they did not show "true and fair" assessments of the troubled state fund’s finances. KPMG retracted the audit reports for financial years ended March 2010, 2011 and 2012, as it did not have access to relevant documents that Malaysia’s new government has since declassified, 1MDB said on Tuesday. The withheld information would have "materially impacted" the assessments had it been made available to the auditor, KPMG said in a June 8 letter to the fund. Prime Minister Mahathir Mohamad is seeking recoup $4.5bn of funds potentially lost through 1MDB as he seeks to uncover the extent of wrongdoing at the fund, whose full name is 1Malaysia Development Bhd. A week after sweeping into power, he ordered the auditor-general to publicly release a report that was protected by the Official Secrets Act since 2016, and revived an investigation that has led to former premier Najib Razak and ...