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2 Minute Read by Reuters Staff KUALA LUMPUR, Malaysia (Reuters) – KPMG PLT refuted claims of breaches and carelessness in connection with state fund 1Malaysia Development Berhad (1MDB) on Friday, promising to “vigorously” battle a $5.64 billion lawsuit launched against 44 current and former partners. PHOTO FROM THE FILE: On March 3, 2016, the KPMG logo is seen at their offices in London’s Canary Wharf financial sector. REUTERS/File Photo/Reinhard Krause According to a 148-page statement of claim filed by the Malaysian government, 1MDB, and various subsidiaries, KPMG’s audit and certification of 1MDB’s financial statements for the years 2010 to 2012 resulted in contract violations and negligence, according to financial daily The Edge. After refusing to sign off on 1MDB’s 2013 accounts, KPMG was fired as the fund’s auditor. “All claims as reported in the news are disputed, and the claim will be strongly defended,” KPMG said in an email to Reuters, adding that the complaint had left it “disappointed.” Reuters was unable to confirm The Edge’s report right away. Requests for comment to Malaysia’s finance ministry were not immediately returned. It announced in June that it was in talks with the auditor to reach an agreement. A request for comment from 1MDB’s lawyers was not immediately returned. KPMG told 1MDB to “immediately take all necessary procedures to preclude any further or future reliance on the audit reports provided by KPMG Malaysia for the financial years ended 31 March 2010 to 31 March 2012” in June 2018. Malaysian authorities have filed a slew of lawsuits in an attempt to reclaim billions of dollars lost in the 1MDB crisis, which has engulfed high-ranking officials, banks, and financial institutions all around the world. In May, 1MDB filed 22 civil lawsuits seeking more than $23 billion in assets from businesses and people accused of defrauding the fund and its ex-subsidiary, including units of global banks Deutsche Bank and J.P. Morgan. Deloitte PLT, which replaced KPMG as 1MDB’s auditor, paid the Malaysian government $80 million last month to settle accusations relating to its dealings with the fund. Liz Lee and Rozanna Latiff contributed reporting, while Ed Davies edited the piece./nRead More

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