Deloitte to pay RM324m 1MDB settlement

The settlement is another success for the govt to recover monies from parties involved in the scandal


DELOITTE PLT has agreed to pay RM324 million in a settlement regarding the 1Malaysia Development Bhd (1MDB) scandal to resolve all claims related to its fiduciary duty on auditing the accounts of 1MDB and subsidiary SRC International Sdn Bhd (SRC) between 2011 and 2014.

Finance Minister Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz (picture) said the settlement was another success for the government to recover monies from parties involved in the scandal.

“The government is determined to ensure that appropriate actions are taken against all individuals or entities involved, directly or indirectly, in the global 1MDB scheme,” he said.

He said the out-of-court settlement will expedite the payment of monies to fulfil 1MDB and SRC’s outstanding obligations, which would otherwise be delayed by potentially protracted and costly court battles.

This settlement announcement comes after Opposition MP Tony Pua urged the government to hold KPMG Malaysia and Deloitte accountable for their roles in the scandal.

Pua said following AMMB Holdings Bhd’s agreement to pay RM2.83 billion to settle claims, Ministry of Finance should also ensure similar solutions are reached with the two 1MDB auditors.

In July 2020, the government negotiated a settlement worth RM15.8 billion with Goldman Sachs Group Inc with an aim to resolve outstanding charges and claims relating to the 1MDB structure.

Additionally, on Feb 26, 2021, the government also achieved a global settlement worth RM2.83 billion related to the involvement of a banking group in the 1MDB issue.

Tengku Zafrul added these settlements will neither affect nor compromise Malaysia’s claims against individuals like Jho Low and other parties related thereto, and who are still being actively pursued in relation to the scandal.