Malaysia

1MDB audit report: no one stopped Arul Kanda from joining PAC meeting, says witness

Requests for amendment never discussed with Public Accounts Committee, ex-NAD chief tells court

Updated 5 years ago · Published on 20 Oct 2021 6:05PM

1MDB audit report: no one stopped Arul Kanda from joining PAC meeting, says witness
Former 1MDB chief executive officer Arul Kanda Kandasamy is charged with abetting Datuk Seri Najib Razak in making the amendments to a 1MDB audit report to protect the latter from being subject to action. – Bernama pic, October 20, 2021

KUALA LUMPUR – The high court here was told today that no one had prevented former 1Malaysia Development Bhd (1MDB) chief executive officer Arul Kanda Kandasamy from attending the Public Accounts Committee (PAC) proceedings to explain the company’s final audit report.

Former National Audit Department (NAD) director Saadatul Nafisah Bashir Ahmad, 65, said this during examination-in-chief by lead prosecutor Datuk Seri Gopal Sri Ram in the trial of former prime minister Datuk Seri Najib Razak and Arul Kanda for alleged tampering of the 1MDB final audit report.

Sri Ram: To your knowledge, did you or anyone prevent or obstruct Arul Kanda from attending the PAC meeting to offer his explanation?

Saadatul Nafisah: No.

However, she said Arul Kanda attended a meeting on February 25, 2016, a day after a meeting was held in which top government officials agreed to amend the original 1MDB audit report.

“He came with the report to request for amendment,” said the seventh prosecution witness, adding that the events that took place on February 24 and 25, 2016, were never discussed in the PAC meeting.

To another question, Saadatul Nafisah, who described the 1MDB’s audit report as a special audit report, said, the audit report on the then klia2 project was also a special one.

She said the special audit reports on 1MDB and klia2 project were considered investigative in nature.

“This is because, unlike normal audits initiated by NAD, the special audit report is sought by either the cabinet or PAC, and the auditors are empowered to not only seek information from the auditee but also from other parties,” she said.

Sri Ram: You described this (1MDB) as a special audit. Is this the first time you (NAD) have done this?

Saadatul Nafisah: No. We have done a few times before this. There was one requested by the cabinet on the klia2 project.

She said the audit on the klia2 project was done when Najib was prime minister, but he (Najib) did not ask for a copy of the report nor for any changes to the report.

Najib, 68, is charged with using his position to order amendments to the 1MDB final audit report before it was presented to the PAC to avoid any action being taken against him, while Arul Kanda, 45, is charged with abetting Najib in making the amendments to the report to protect Najib from being subject to action.

Both are charged under Section 23(1) of the Malaysian Anti-Corruption Commission Act 2009, which provides for a jail term of up to 20 years and a fine of not less than five times the amount of gratification or RM10,000, whichever is higher, upon conviction.

The trial before judge Mohamed Zaini Mazlan continues on November 29. – Bernama, October 20, 2021

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