Exclusive | ‘Abetting in scandal or merely negligent’? Deloitte and KPMG investigated over involvement in Malaysia’s 1MDB corruption scandal
- The Malaysian Securities Commission is looking into the firms to determine if they were “were aiding and abetting in this scandal, or merely negligent. The accountants must be held accountable”
Deloitte and KPMG – two of the world’s largest audit firms – are being investigated by the Malaysian authorities over their involvement in the 1Malaysia Development Berhad global corruption scandal say sources.
The Malaysian Securities Commission is looking into the firms to determine if they were “were aiding and abetting in this scandal, or merely negligent. The accountants must be held accountable”, said a source close to the matter.
This investigation is the latest move in the government’s 1MDB corruption dragnet, which has also seen them file criminal charges against Goldman Sachs for their part in the US$4.5 billion scandal and raid the investment bank’s local law firm. Disgraced former premier Najib Razak, too, is on trial for multiple charges of corruption and abuse of power following his ouster in May last year. The plundering of the 1MDB sovereign wealth fund was a key factor in his electoral loss, with political opponents Pakatan Harapan campaigning and winning on an anti-corruption platform.
After coming to power, the new government launched an aggressive multi-agency probe into the scandal, charging a slew of high-ranking government officials and going after involved parties, leading to Goldman Sachs CEO David Solomon issuing a public apology and billionaire financier and 1MDB adviser Low Taek Jho going underground.
Watchdogs have been pushing for the government to widen the investigation, tackling all layers of the scandal including the auditors.