KUALA LUMPUR (July 30): Petaling Jaya Utara MP Tony Pua raised a question on the possibility of 1Malaysia Development Bhd's (1MDB) former auditor KPMG nullifying 1MDB's accounts for financial years ended March 31, 2010 (FY2010), 2011 (FY2011) and 2012 (FY2012).

Pua's statement today was in response to 1MDB's recent statement that its FY2013 and FY2014 accounts, which were audited by Deloitte, "should no longer be relied on by any party". This followed the US Department of Justice's civil forfeiture complaints involving 1MDB-linked assets.

1MDB said Deloitte had in February this year notified 1MDB of its intention to resign as the company's auditor. 1MDB said it was "committed to finding a new auditor for 1MDB, to replace Deloitte."

Today, Pua said if KPMG nullified 1MDB’s FY2010 accounts, the nullification would automatically invalidate the FY2011 and FY2012 numbers.

"The March 2010 accounts was crucial because it had involved 1MDB’s first investment of US$1 billion (about RM4.07 billion) to form the short-lived joint venture with Petrosaudi International Ltd.

"The nullification of 1MDB’s 2010 audit would also mean that the 2011 and 2012 audits would automatically cease to be valid as well," Pua said.

theedgemarkets.com could not reach KPMG officials for comment.