KPMG agrees to pay RM333 million as part of 1MDB settlement, says MOF

Raevathi Supramaniam

Settlement is part of Malaysia's continuing recovery efforts relating to 1MDB and its related entities, says Finance Minister Tengku Zafrul Abdul Aziz. – The Malaysian Insight pic, September 16, 2021.

KPMG has agreed to pay RM333 million as part of the 1Malaysia Development Bhd (1MDB) settlement with the government in relation to the firm’s fiduciary duties as the sovereign wealth fund’s auditor, the Finance Ministry said today.
“This settlement is part of the Malaysian government’s continuing recovery efforts that it is pursuing against all parties directly or indirectly involved in 1MDB and its related entities.
“The government will ensure that actions are taken accordingly to individuals and entities who were directly or indirectly part of the 1MDB global scheme,” Finance Minister Tengku Zafrul Abdul Aziz said in the statement.
On July 6, the government, the MOF, 1MDB and various subsidiaries filed a US$5.6 billion suit against 44 partners of KPMG Malaysia.
The firm is alleged to have acted in breach of contract and negligence in the audit and certification of 1MDB’s financial statements for financial year 2010 to 2012.
“This settlement ends the civil suit filed against KPMG on July 6,” he added.
The settlement will be used towards meeting 1MDB’s outstanding obligation and save taxpayers’ money and the time that will be needed for justice to be served, the minister said.
He added that the settlement with KPMG is valued at more than 800 times the fees it earned as 1MDB’s auditor.
“This settlement will not affect or compromise Malaysia’s claims against individuals like Jho Low and other parties related thereto and who are still being pursued in relation to the 1MDB scandal.”
In July last year, the global banking firm Goldman Sachs agreed to pay RM2.8 billion in settlement to the Malaysian government for its role in helping 1MDB raise funds.
In February this year, AMMB Holdings Bhd agreed to a RM2.83-billion global settlement on all outstanding claims and actions in relation to the AmBank Group’s involvement in the 1MDB matter. This is on top of the RM53.7 million penalty imposed on the group by Bank Negara.
Then in June, the government received a remittance of RM336 million from Deloitte PLT related to funds seized in matters related to 1MDB. – September 16, 2021.

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