Major audit firms have been complicit in financial scandals, says Anwar

Free Malaysia Today

7 days ago

Prime Minister Anwar Ibrahim said the focus on good governance and auditing should go beyond merely attracting investments. (Bernama pic)
PUTRAJAYA : Prime Minister Anwar Ibrahim today said that major audit firms have, at times, been complicit in financial scandals, citing the 1MDB affair as an example.
Without identifying any auditor in particular, he said no auditors 'were entirely free from being targeted'.
'If you look at 1MDB, (you will see the) complicity of big audit firms,' he said at the closing of the Asean Auditor Conference 2025 here.
The 1MDB scandal, which US authorities dubbed the largest kleptocracy ever, saw over US$4 billion embezzled from the state investment arm.
In 2023, Anwar was reported as saying that the scandal would not have occurred if not for the 'complicity' of international financial institutions, including Goldman Sachs.
Speaking today, Anwar said the focus on good governance and auditing should go beyond merely attracting investments.
'That (auditing), to me, is critical but not pivotal,' he said.
He also underscored the importance of strengthening audit institutions to ensure true accountability.
'That's why to my mind, it is a particularly important endeavour that audit institutions be empowered, to operate independently and to follow the trail of accountability wherever it leads,' he said.
Referring to his experience as head of government, Anwar said he had no intention of interfering in the auditing process.
As head of government, Anwar said his job was to present the findings of the audit department to the Cabinet, which would then be tabled and debated in Parliament.
'That is what we mean by good governance and transparency,' he said.