THE Finance Ministry must now proceed with its claims against 1Malaysia Development Bhd’s (1MDB) former auditors KPMG and Deloitte following its successful settlement with AMMB Holdings Bhd recently, said Tony Pua.

“The Ministry of Finance has done well to complete the RM2.83 billion settlement with Ambank Bhd over their culpability in the 1MDB corruption scandal.

“It must now ensure similar resolutions with 1MDB auditors, KPMG and Deloitte, whether through the courts or settlements,” said the DAP national publicity secretary.

The ministry should not “give any quarters” in its negotiations with Deloitte and KPMG, he said.

“If they have demonstrated no remorse for their culpability in the tens of billions of ringgit for the Malaysian taxpayers, MoF, via 1MDB, must immediately file the relevant suits, which have been fully prepared, against them.”

The two international audit firms have litigiously contested, blocked and were uncooperative with the entire investigation and hearing process with the sole intention of getting off the hook with regard to their involvement in the 1MDB scandal, he said.

While both firms claim “integrity” as their core value, their actions have proven otherwise, Pua said.

The Petaling Jaya Utara MP said the claims documents against both entities were completed by professionals more than a year ago.

The former political secretary of Pakatan Harapan’s finance minister Lim Guan Eng said the ministry had engaged lawyers and accountants to prepare comprehensive claims.

These claims were against those who were directly or indirectly culpable for the tens of billions of ringgit lost and misappropriated by former prime minister Najib Razak and his associates via 1MDB. 

The claim documents were completed in the final weeks before the collapse of the PH government, he added.

“However, unlike the degree of forthcoming cooperation shown by Ambank, these ‘international’ auditors have failed to demonstrate any remorse and have refused to acknowledge any degree of culpability in the RM50 billion scandal despite clear evidence of their failure to carry out their audit responsibilities in a competent and diligent manner,” he said.

Pua personally filed complaints against both KPMG and Deloitte as well as their respective partners Ahmad Nasri Abdul Wahab and Ng Yee Hong in March and June 2015 respectively with the Malaysian Institute of Accountants (MIA) for the filing of fraudulent 1MDB annual financial statements.

Pua’s complaint against KPMG was based on its failure to take into consideration the material disclosures of the transactions linked to the state investment fund’s US$1 billion (RM4.1 billion) investment to form an aborted joint venture with PetroSaudi International Limited circa 2009-2010 – from which at least US$700 million was siphoned off to Low Taek Jho’s company, Good Star Limited.

“KPMG had performed the arguably record-breaking feat of signing off the March 2010 financial audit within three weeks after being appointed in September 2010, after the original auditors Ernst & Young (EY) were sacked.”

Deloitte then replaced KPMG in 2013 because it refused to sign off the March 2013 accounts as it was unable to verify the authenticity of 1MDB’s US$2.318 billion investment in an investment fund parked in Cayman Islands.

The AMMB settlement follows Goldman Sachs’ RM15.8 billion payment over the Wall Street banker’s role in the defrauding of 1MDB. – March 1, 2021.