1MDB LOANS & ASSETS – WERE THEY PART OF INITIAL BUSINESS PLAN?

Kumpulan  Perangsang Selangor chairman Raja Datuk Idris notes that 1MDB’s loans and assets are talked about now, but asks if they were part of the initial business plan presented to government.

Yesterday, 7th September 2015, YM Raja Dato’ Idris Raja Kamarudin, Chairman of Selangor’s Kumpulan Perangsang Selangor Berhad, as a panellist on a conference held in Kuala Lumpur by the Institute of Internal Auditors Malaysia, commented that whilst internal and external auditors carry out financial audits on companies, these could be sometimes information that is 12 or 18 months old.

He suggested that they should also audit and ensure that the Business Plan is on track. After all, the reason for investing in a project, venture or company is normally based on the Business Plan presented.

Taking the example of 1MDB, he wonders whether anyone has actually audited the Business Plan to see if they were supposed to borrow such amounts of money and to be given such assets by the government.

If it was in the Business Plan as approved by the Board and other authorities, then the Board and auditors should review the Business Plan regularly to make sure it is on track.

The financial audits deals with the past, however, the Business Plan is suppose to determine the future business and direction of the company, he further commented.