After AmBank, Deloitte reaches RM324 million settlement with Putrajaya

(FMT) – Deloitte PLT has agreed to a US$80 million (RM324 million) settlement to resolve all claims related to its fiduciary duty on auditing the accounts of 1MDB and SRC International Sdn Bhd.

According to the finance ministry, the settlement with Deloitte represents the largest 1MDB-related settlement by an audit firm in Southeast Asia.

Finance Minister Tengku Zafrul Aziz said the settlement marks another success in the government’s continuing recovery efforts against parties involved in 1MDB, SRC and its related entities.

“The Malaysian 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 in a statement.

Tengku Zafrul went on to say that the out-of-court settlement with Deloitte will expedite the payment to fulfil 1MDB and SRC’s outstanding obligations, “which would otherwise be delayed by potentially protracted and costly court battles”.

Deloitte’s settlement comes just days after Putrajaya announced a RM2.8 billion settlement with AMMB Holdings Bhd on all outstanding claims and actions in relation to the AmBank Group’s involvement in the 1MDB scandal.

Subsequently, Damansara MP Tony Pua, a fierce critic of the 1MDB scandal urged the government to reach settlements with 1MDB’s auditors KPMG and Deloitte Malaysia as well.

In July, Goldman Sachs agreed to a total settlement of US$3.9 billion to resolve outstanding charges and claims related to the three bond transactions that the company had structured and arranged for 1MDB.

“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 1MDB scandal,” Tengku Zafrul said, referring to fugitive financier Low Taek Jho.