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Malaysia Fines Deloitte for Failing to Report 1MDB Oddities

  • Securities Commission imposes 2.2m ringgit fine on Deloitte
  • Previous 1MDB auditors include KPMG and Ernst & Young
Updated on

Malaysia imposed the maximum fine on Deloitte PLT for breaches related to a bond issuance by 1MDB, becoming the first auditor of the scandal-ridden state fund to face penalties.

The Securities Commission imposed a 2.2 million ringgit ($536,000) fine on Deloitte for failing to immediately report irregularities in a 2.4 billion ringgit Islamic bond sale that may have had material effect on 1MDB’s ability to repay creditors. Deloitte was the auditor for 1MDB units Bandar Malaysia Sdn, the sukuk issuer, and 1MDB Real Estate Sdn for financial years ended March 2015 and 2016.