KPMG to pay US$80.11m to Malaysian govt as 1MDB settlement, says finance ministry

The settlement is valued at more than 800 times the audit fees earned by KPMG.
The settlement is valued at more than 800 times the audit fees earned by KPMG.PHOTO: REUTERS

KUALA LUMPUR (THE STAR/ASIA NEWS NETWORK) - Audit firm KPMG has agreed to a settlement valued at RM333 million (S$108 million) to resolve all claims related to its fiduciary duties on auditing of 1Malaysia Development Berhad (1MDB) accounts for the period of 2010 to 2012, Bernama reported on Thursday (Sept 16).

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, Malaysia's finance ministry said in a statement.

Malaysian Finance Minister 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 have not affected the Malaysian government's determination to ensure that appropriate actions are taken against all individuals or entities involved, directly or indirectly, in the global 1MDB scheme," he said on Thursday.

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

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

The ministry thanked the Attorney General's Chambers and all the regulatory bodies and enforcement agencies for their efforts in achieving this settlement.