Lawsuit to recover 1MDB monies


KPMG has denied allegations of breaches and negligence in relation to state fund 1MDB and pledged to “vigorously” contest a reported US$5.64bil (RM23.63bil) lawsuit filed against 44 current and former partners.

KUALA LUMPUR: The Finance Ministry (MoF) has confirmed that a writ and statement of claim have been filed against 44 current and former partners of Malaysian accounting firm KPMG PLT on July 6.

The ministry was responding to numerous media queries about the legal action filed against the firm.

The plaintiffs are the government of Malaysia, Minister of Finance Inc, 1Malaysia Development Bhd (1MDB) and four other subsidiaries of 1MDB. The claim is related to the 1MDB audit works performed by KPMG for the years 2010 to 2012.

As the matter is already before the court, MoF said it is is unable to make further comments in observing the rule of subjudice.

Meanwhile, Reuters in a report said KPMG has denied allegations of breaches and negligence in relation to state fund 1MDB and pledged to “vigorously” contest a reported US$5.64bil (RM23.63bil) lawsuit filed against 44 current and former partners.

KPMG was sacked as 1MDB’s auditor after it refused to sign off on the fund’s 2013 accounts.

“All allegations as reported in the news are refuted and the claim will be vigorously contested, ” KPMG said in an email to Reuters, noting it was “disappointed” with the suit.

KPMG in June 2018 had said it had informed 1MDB to “immediately take all necessary steps to prevent any further or future reliance on the audit reports prepared by KPMG Malaysia for the financial years ended March 31, 2010 to March 31, 2012”.

Malaysian authorities have filed a series of lawsuits in a bid to recover billions of dollars missing from 1MDB in a scandal that has implicated high-level officials, banks and financial institutions around the world.

1MDB in May filed 22 civil suits seeking to recover more than US$23bil (RM96.38bil) in assets from entities and people allegedly involved in defrauding the fund and its ex-subsidiary, including units of global banks Deutsche Bank and J.P. Morgan.

Deloitte PLT, which took over as 1MDB’s auditor after KPMG, paid US$80mil (RM335.24mil) to the Malaysian government last month to settle claims related to its dealings with 1MDB.

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