Malaysia says auditor KPMG to pay $80m in 1MDB settlement

Photo: Reuters

Malaysia said on Thursday that audit firm KPMG has agreed to pay a 333 million ringgit ($80.11 million) settlement to resolve all 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.

KPMG confirmed to Reuters in an email that a settlement has been reached in the claim filed against a number of defendants including some partners of the audit firm.

“This settlement represents a collective agreement by all the parties, including the Malaysian government,” it said.

The outcome, it said, will enable all involved to “move forward and focus on other important business, health and economic issues”, and for the firm to focus on building public trust.

The finance ministry said the settlement was valued at more than 800 times the audit fees earned by KPMG, which “represents one of the largest 1MDB-related settlements by an audit firm in Southeast Asia.”

The government, 1MDB and its subsidiaries filed a $5.6 billion 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 $80 million from Deloitte, which took over as 1MDB’s auditor after KPMG, to settle claims related to its dealings with 1MDB.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.