KUALA LUMPUR – Malaysia said today audit firm KPMG has agreed to pay a RM333 million settlement to resolve all claims related to their fiduciary duties on auditing of 1Malaysia Development Bhd (1MDB) accounts from 2010 to 2012.
The Finance Ministry said in a statement that the settlement will conclude a suit filed against the auditor in July.
KPMG confirmed to Reuters in an email that a settlement has been reached in the claim filed against a number of current and former partners at the audit firm in Malaysia.
“This settlement represents a collective agreement by all the parties, including the Malaysian government,” it said.
The outcome, it said, will enable all involved to “move forward”, and for the firm to focus on building public trust.
The Finance Ministry said: “The settlement with KPMG, valued at more than 800 times the audit fees earned by KPMG, represents one of the largest 1MDB-related settlements by an audit firm in Southeast Asia.”
Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said this demonstrates the government’s resolve to diligently pursue recovery efforts against all parties involved in 1MDB and its related entities.
“The recent political developments have not affected the Malaysian government’s determination to ensure that appropriate actions are taken against all individuals or entities involved, directly or indirectly, in the global 1MDB scheme,” he said.
The government, 1MDB and its subsidiaries filed a US$5.6 million (RM23.2 million) suit against 44 current and former partners at the audit firm on July 6, allegations that KPMG denied and pledged to “vigorously” contest.
In June, Malaysia said it received US$80 million from Deloitte, which took over as 1MDB’s auditor after KPMG, to settle claims related to its dealings with 1MDB.– Reuters, September 16, 2021
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