3 March 2021.
Audit firm Deloitte will pay Malaysian government US$80 million to resolve all claims related to its auditing of accounts from 2011 to 2014, of sovereign investment firm 1MDB and its subsidiary SRC International. The government said in November that 1MDB was still US$7.8 billion in debt.
Ministry of Finance welcomed the out-of-court settlement as it would expedite the payment of monies to fulfil 1MDB and SRC’s outstanding obligations and also avoid potentially protracted and costly court battles.
Last week, AmBank said it would pay US$700 million to settle claims related to 1MDB probes. It added that this payout will adversely impact on its earnings.
The ministry said the settlements would not affect or compromise Malaysia’s claims against fugitive financier Jho Low or other parties wanted in connection with the 1MDB scandal.
In 2019, Malaysia’s securities regulator fined Deloitte 2.2 million ringgit (US$543,075) for failing to report irregularities in relation to an Islamic bond issued by a 1MDB-linked company.