DELOITTE PLT has agreed to pay RM324 million to settle all claims pertaining to the firm’s role as the auditor of the accounts of 1Malaysia Development Bhd and SRC International Sdn Bhd.

“The Ministry of Finance is pleased to announce that Deloitte PLT (“Deloitte”) has agreed to a RM324-million (USD80-million) settlement to resolve all claims related to their fiduciary duty on auditing the accounts of 1MDB and SRC International Sdn Bhd (“SRC”) for the period 2011 - 2014,” the ministry said in a statement.

The MOF said this was the largest 1MDB-related settlement by an audit firm in Southeast Asia.

The out-of-court settlement will also expedite payment to fulfil 1MDB and SRC’s outstanding obligations, which would otherwise be delayed by potentially protracted and costly court battles, it said.

Just a week ago, the Ambank Group had agreed to settle with the government all claims in regard to its involvement in the 1MDB scandal

The MOF had announced that AMMB Holdings Bhd would pay RM2.83 billion to settle the case.

This had followed US investment bank Goldman Sach’s RM15.8 billion settlement with the Malaysian government in July  over the Wall Street titan’s role in the 1MDB affair.

Finance Minister Tengku Zafrul Abdul Aziz called the Deloitte settlement yet another successful effort to recover funds and assets linked to the 1MDB scandal.

“The Malaysian government is determined to ensure that appropriate actions are taken against all individuals or entities involved, directly or indirectly, in the global 1MDB scheme,” he added.

The Securities Commission had previously fined Deloitte RM2.2 million for four breaches linked to RM2.4billion of sukuk issued by 1MDB subsidiary Bandar Malaysia Sdn Bhd in 2014.

The firm, which is one of the big four audit and accounting firms, was the auditor for Bandar Malaysia and 1MDB Real Estate Sdn Bhd, now known as TRX City Sdn Bhd, for the financial years 2015 and 2016.

Deloitte filed for a judicial review in November 2019, to challenge the SC’s decision, which was dismissed by the Kuala Lumpur High Court in December 2020. – March 3, 2021.