KPMG Agrees to Pay $80.11 Million to Settle 1MDB Scandal

The Ministry of Finance in Malaysia announced on Thursday that Anglo-Dutch multinational audit firm KPMG has agreed to pay a total of 333 million ringgit ($80.11 million) in settlement to resolve all claims regarding its role in the 1Malaysia Development Bhd (1MDB) scandal.

Malaysian newspaper Malay Mail reported on Thursday that the settlement will conclude the civil lawsuit that the Malaysian government filed against KPMG related to its fiduciary duties on the auditing of the state investment fund.

In July, the government filed a lawsuit to seek more than $5.6 billion from 44 KPMG Malaysia partners for committing breaches of contract and negligence in its audit and certification of 1MDB’s financial statements for the financial years 2010 to 2012. 

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

In a statement, Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz said this milestone reflects the government’s determination to diligently pursue recovery efforts against all parties involved in the 1MDB scandal 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,” the minister said.

The ministry also expressed its gratitude to the Attorney General’s Chambers and all the regulatory bodies and enforcement agencies for their cooperation in achieving the settlement.

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