Malaysia fines Deloitte for breaches linked to 1MDB, Latest Business News - The New Paper

Malaysia fines Deloitte for breaches linked to 1MDB

This article is more than 12 months old

KUALA LUMPUR Malaysia's securities regulator yesterday said it had fined Deloitte for committing four breaches related to a RM2.4 billion (S$790 million) sukuk programme issued by a company linked to scandal-tainted state fund 1Malaysia Development Berhad (1MDB).

Deloitte was found to have failed to discharge its statutory obligations despite having found irregularities when auditing Bandar Malaysia and its holding company, 1MDB Real Estate, in 2015 and 2016, the Securities Commission said in a statement, Reuters reported.

On Saturday, the commission said it was reviewing the conduct of auditors that had handled the accounts of 1MDB, now the subject of money laundering investigations in at least six countries, Bloomberg reported.

Deloitte had taken over as the fund's auditor after 1MDB fired its earlier auditors, KPMG and Ernst & Young, the authorities have said.

It resigned as auditor in early 2016. After the US Justice Department filed civil lawsuits in 2016 over 1MDB.

Deloitte said the 1MDB finance statements it had audited should no longer be relied upon.