DAP federal lawmaker Tony Pua today lodged a report against global auditors KPMG and Ernst & Young ?for "key discrepancies" in the 2010 financial accounts of debt-laden 1Malaysia Development Berhad (1MDB).

In lodging the report with the Malaysian Institute of Accountants (MIA), the Petaling Jaya Utara MP ?said the key discrepancies were not disclosed in the state investment vehicle's financial statement ending March 31, 2010.

The alleged discrepancies include details of 1MDB's joint venture (JV) with PetroSaudi International Limited (PSI), including the US$700 million (RM2.58 billion) that was allegedly channelled into Good Star Limited, a firm allegedly owned by businessman Low Taek Jho, or popularly known as Jho Low.

Another alleged discrepancy raised by Pua was the 1.5 billion PSI shares that "disappeared" within months after the JV was signed, when it was converted into an Islamic loan.

The conversion, he said, took place after the financial statement was issued although 1MDB's financial statement recorded it as taking place on March 31, 2010.

Documents leaked by whistleblower site Sarawak Report dated July 23 and September 8, 2010, had specifically referred to the "Murabaha financing agreement dated June 14, 2010, between 1MDB and 1MDB PetroSaudi Limited, a JV company formed between 1MDB and PSI".

"These two discrepancies were not disclosed in the financial statement.

"Thus, I suspected there are irregularities in the transactions," he said after handing over his complaint memorandum to both MIA registrar Sudirman Masduki and chief executive officer Ho Foong Moi.

KPMG was 1MDB's auditor between 2010 and 2012, and had signed off 1MDB's financial statement ending March 31, 2010, on October 4 the same year.

Before that, Ernst & Young was 1MDB's auditor but the firm quit in 2010 without signing off the accounts. – March 27, 2015.