Deloitte And KPMG Under Scrutiny For Role In 1MDB Corruption Scandal

Advertisment

In Malaysia, International auditors Deloitte and KPMG are being investigated for their role in the 1MDB corruption scandal.

Last Saturday, authorities in Malaysia said that they are looking into the auditors of the state fund, without identifying the said companies.

The regulator disclosed: “The Securities Commission’s review of the conduct of auditors in relation to 1MDB audits is still on-going.”

The revelation comes after a report in the South China Morning Post which cited some sources that said that the commission was looking into the work of Deloitte and KPMG to see if they “were aiding and abetting in this scandal, or merely negligent.”

Both of the auditors could not immediately be reached for comment regarding the matter.

The Department of Justice of the United States of America claims that more than $4.5 billion (£3.4 billion) was stolen by officials who were working on the 1MDB fund between the period of 2009 and 2014.

Deloitte served as the auditor for the finances of 1MDB between the period of 2013 and 2014, however, it later said that they were not reliable after the Justice Department filed some civil lawsuits.

Correspondingly, KMPG has withdrawn its support for the financial statements of the funds which it audited in 2010, 2011 and 2012.

The scandal is considered as one of the largest corruption cases in the history of the world. It resulted in the defeat of Najib Razak, the Malaysian Prime Minister, last year. He has been charged, however, has pleaded not guilty.

Meanwhile, Goldman Sachs, which helped sell the 1MDB bonds, is facing criminal charges in Malaysia.