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

Malaysia said on Thursday 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.

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 did not immediately respond to a request for comment.

"The settlement with KPMG, valued at more than 800 times the audit fees earned by KPMG, represents one of the largest 1MDB-related settlements by an audit firm in Southeast Asia," the ministry said. The government, 1MDB, and its subsidiaries filed a $5.6 million lawsuit https://www.reuters.com/business/finance/kpmg-denies-alleged-breaches-negligence-after-reported-1mdb-lawsuit-2021-07-09 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. ($1 = 4.1570 ringgit)