Finance KPMG to pay Malaysia $US80 million over 1MDB scandal

KPMG to pay Malaysia $US80 million over 1MDB scandal

KPMG has agreed to pay 333 million ringgit to resolve claims related to the1MDB sovereign fund. Photo: AP
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Malaysia says audit firm KPMG has agreed to pay a 333 million ringgit ($109 million) settlement to resolve claims related to their fiduciary duties on auditing of 1Malaysia Development Berhad (1MDB) accounts from 2010 to 2012.

The finance ministry said in a statement that the settlement will conclude a lawsuit filed against the auditor in July, and that KPMG will expedite the payment.

Malaysian and US investigators say at least $US4.5 billion was stolen from the sovereign fund between 2009 and 2014, in a wide-ranging scandal that has implicated high-level officials, banks and financial institutions around the world.

KPMG did not immediately respond to a request for comment about the payment.

“The settlement with KPMG, valued at more than 800 times the audit fees earned by KPMG, represents one of the largest 1MDB-related settlements by an audit firm in south-east Asia,” the ministry said on Thursday.

The government, 1MDB and its subsidiaries filed a $US5.6 million lawsuit against 44 current and former partners at the audit firm on July 6, allegations that KPMG denied and pledged to “vigorously” contest.

In June, Malaysia said it received $US80 million from Deloitte PLT, which took over as 1MDB’s auditor after KPMG, to settle claims related to its dealings with 1MDB.