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KPMG to pay Malaysia $US80 million over 1MDB scandal

KPMG has agreed to pay 333 million ringgit to resolve claims related to the1MDB sovereign fund.

KPMG has agreed to pay 333 million ringgit to resolve claims related to the1MDB sovereign fund. Photo: AP

Malaysia says audit firm KPMG has agreed to pay a 333 million ringgit ($109 million) settlement to resolve claims related to their fiduciary duties on auditing of 1Malaysia Development Berhad (1MDB) accounts from 2010 to 2012.

The finance ministry said in a statement that the settlement will conclude a lawsuit filed against the auditor in July, and that KPMG will expedite the payment.

Malaysian and US investigators say at least $US4.5 billion was stolen from the sovereign fund between 2009 and 2014, in a wide-ranging scandal that has implicated high-level officials, banks and financial institutions around the world.

KPMG did not immediately respond to a request for comment about the payment.

“The settlement with KPMG, valued at more than 800 times the audit fees earned by KPMG, represents one of the largest 1MDB-related settlements by an audit firm in south-east Asia,” the ministry said on Thursday.

The government, 1MDB and its subsidiaries filed a $US5.6 million lawsuit against 44 current and former partners at the audit firm on July 6, allegations that KPMG denied and pledged to “vigorously” contest.

In June, Malaysia said it received $US80 million from Deloitte PLT, which took over as 1MDB’s auditor after KPMG, to settle claims related to its dealings with 1MDB.

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