International independent auditors KPMG have been accused by DAP of "failing Malaysians" after the audit firm's Malaysian arm allegedly "cooked" 1MDB's financial statements ending March 2010.

 

DAP's Petaling Jaya Utara MP Tony Pua said that KPMG auditors "knowingly" took  an "active" part in trying to "cover up" the controversial 1MDB-Petrosaudi joint venture.

 

1MDB invested US $1 billion into the venture, of which US$700 million was immediately returned to PetroSaudi International to repay a loan PetroSaudi, the subsidiary, had taken from its parent company.

 

According to recent Sarawak Report exposes, the money was actually channeled eventually to Good Star Limited, a company controlled by controversial Malaysian tycoon Low Taek Jho.

 

The details of the joint venture were never revealed in the financial statements ending March 2010 because it was terminated on March 31 2010, the last day of the financial report.

 

Sarawak Report recently exposed email communications between 1MDB and PetroSaudi bosses which allegedly revealed how much KPMG had helped 1MDB to "execute the cover up".

 

"KPMG has clearly failed to act with any integrity in this audit exercise and did not act with the necessary independence," Pua said.

 

"Clearly, KPMG has failed Malaysians," he added.