Malaysia's police raid Deloitte's office over 1MDB case

Deloitte was the auditor for 1MDB units Bandar Malaysia, the sukuk (Islamic bond) issuer, and 1MDB Real Estate for financial years ended March 2015 and 2016.
Deloitte was the auditor for 1MDB units Bandar Malaysia, the sukuk (Islamic bond) issuer, and 1MDB Real Estate for financial years ended March 2015 and 2016.PHOTO: REUTERS

PETALING JAYA (THE STAR/ASIA NEWS NETWORK, REUTERS) - Malaysian police on Thursday (May 23) have raided the office of accounting firm Deloitte Malaysia in connection with the 1Malaysia Development Bhd (1MDB) case.

A team of officers from the Commercial Crimes Investigations Department arrived at the company's office in Taman Tun Dr Ismail at noon.

They seized documents and files from the office.

As of 3.15pm, the seizures were still ongoing but so far, no arrests have been made.

Deloitte audited 1MDB’s financial statements for 2013 and 2014, before it resigned as the fund’s auditor in early 2016.

In a late email to Reuters, Deloitte confirmed that the police sought the firm’s assistance in the provision of records relating to 1MDB. 

“Deloitte Malaysia is not the subject of the investigation and is cooperating fully with the authorities in their investigation,” the firm said.

Previous media reports say that Malaysian authorities in January this year imposed the maximum fine on Deloitte for breaches related to a bond issue by scandal-tainted 1MDB, a state fund started in 2009 by then prime minister Najib Razak.

Malaysia's Securities Commission imposed a RM2.2 million fine on Deloitte for failing to immediately report irregularities in a RM2.4 billion sukuk (Islamic bond) sale that may have had material effect on 1MDB's ability to repay creditors.

Deloitte was the auditor for 1MDB units Bandar Malaysia, the sukuk issuer, and 1MDB Real Estate for financial years ended March 2015 and 2016.

Authorities in at least six countries are investigating alleged graft and money laundering at  1MDB.

United States prosecutors say about US$4.5 billion (S$6.2 billion) was allegedly misappropriated from 1MDB by high-level officials of the fund and their associates.