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KPMG to pay $108m to Malaysian govt as 1MDB settlement

KUALA LUMPUR

Audit firm KPMG has agreed to a settlement valued at RM333 million (S$108 million) to resolve all claims associated with its fiduciary duties on auditing of 1Malaysia Development Berhad (1MDB) accounts for the amount of 2010 to 2012, Bernama reported on Thursday (Sept 16).

The settlement with KPMG, valued at quite 800 times the audit fees earned by KPMG, represents one of the biggest 1MDB-related settlements by an audit firm in Southeast Asia, Malaysia’s finance ministry said during a statement.

Malaysian minister of finance Tengku 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 haven’t affected the Malaysian government’s determination to make sure that appropriate actions are taken against all individuals or entities involved, directly or indirectly, within the global 1MDB scheme,” he said on Thursday.

The ministry said the settlement will conclude the lawsuit filed on July 6, 2021, against KPMG, which can expedite the payment of monies to fulfill 1MDB’s outstanding obligations, and save the court’s time and public resources.

It said this settlement won’t affect or compromise Malaysia’s claims against individuals like fugitive financier Jho Low and other related parties, who are still being actively pursued in reference to the 1MDB financial scandal.

The ministry thanked the Attorney General’s Chambers and every one of the regulatory bodies and enforcement agencies for his or her efforts in achieving this settlement.

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