KUALA LUMPUR, Malaysia (July 9): The Ministry of Finance (MoF) announced today that it has filed a writ and statement of claim against 44 KPMG PLT partners, confirming a revelation reported earlier today by The Edge. The government of Malaysia, the Minister of Finance Inc, 1Malaysia Development Bhd (1MDB) and four other subsidiaries of 1MDB are the plaintiffs in the case filed on Tuesday (July 6), according to an authorised ministry spokeswoman via a chat app.
“The claim is connected to KPMG’s 1MDB audit work from 2010 to 2012. Because the case is already before the court, the Ministry of Foreign Affairs is unable to speak further due to the law of sub judice “Added the spokeswoman.
Theedgemarkets.com previously reported that a US$5.64 billion (RM23.63 billion) lawsuit was launched against the KPMG partners, alleging breach of contract and negligence in the audit and certification of 1MDB’s financial accounts for the fiscal years ended March 31, 2010, 2011, and 2012.
After refusing to sign off on 1MDB’s FY13 accounts, KPMG was fired as its auditor.
According to the plaintiffs’ statement of claim, US$5.64 billion was looted from 1MDB and its connected businesses to benefit former Prime Minister Datuk Seri Najib Razak and his friends or nominees.
They stated that US$3.197 billion of the US$5.64 billion was misappropriated during the three years that KPMG was 1MDB’s auditor.
Other plaintiffs listed in the statement of claim include 1MDB Energy Holdings Ltd (1MEHL), 1MDB Energy Ltd (1MEL), 1MDB Energy (Langat) Ltd (1MELL), and Global Diversified Investment Company Ltd, formerly known as 1MDB Global Investment Company Ltd, in addition to 1MDB, the government, and MOF Inc.
It had been reported that the Ministry of Finance was considering a settlement with KPMG over the 1MDB scandal, which the ministry confirmed on June 3 when it announced the receipt of RM336 million (US$80 million) in settlement from Deloitte PLT, which took over the audit work at 1MDB after KPMG was fired.
The ministry stated last Friday (July 2) that it had collected RM1.8 billion from AMMB Holdings Bhd as part of an RM2.83 billion settlement for the banking group’s role in the 1MDB crisis, with the remaining payment due by July 2022.
Malaysia’s Assets Recovery Trust Account had received RM18.176 billion in funds seized, returned, or for settlements related to 1MDB as of July 2.
1MDB and the Malaysian government are suing KPMG partners for US$5.64 billion. Following the rumored 1MDB lawsuit, KPMG denied any breaches or carelessness./n
