Datuk Asri Hamidon has been appointed 1MDB’s new chairman. — Bernama pic

KUALA LUMPUR, June 26 — Scandal-hit fund 1Malaysia Development Bhd (1MDB) announced today its appointment of Datuk Asri Hamidon as its chairman.

Asri is the Treasury deputy secretary-general overseeing government investment. His chairmanship of 1MDB was effective yesterday.

1MDB also said it has appointed a new executive committee (exco) comprising Datuk Muhammad Faiz Azmi, Datin Rashidah Mohd Sies and Datuk Wan Mohd Fadzmi Wan Othman.

“The exco has been entrusted by the board of directors to manage the day-to-day running of the company,” the board of directors said in a statement.

Last month, the chief secretary to the government relieved Tan Sri Irwan Serigar Abdullah of all duties as secretary-general of the Treasury with immediate effect, including as chairman of 1MDB.

In a separate statement, 1MDB said it was told on June 8 by audit firm KPMG to stop relying on three financial reports for the 2010, 2011, and 2012 financial years that it had audited.

“In the letter, KPMG advised us that 1MDB ‘should immediately take all necessary steps to prevent any further reliance’ on the three audit reports,” it said.

KPMG said its decision was made after reviewing the recently declassified auditor-general’s report on 1MDB and previous documents that were previously withheld by 1MDB’s management.

The audit firm said the documents would have “materially impacted” the financial statements it audited if they had been disclosed.

1MDB also said that KPMG has advised it to inform the relevant authorities of the latest status of the audit reports.

In May, the declassified auditor-general’s report said senior officials at 1MDB had withheld information from its board and took some decisions without the board’s approval.

The previous Barisan Nasional administration had classified the report by then auditor-general Tan Sri Ambrin Buang under the Official Secrets Act.