KUALA LUMPUR: Malaysia’s securities regulator said on Saturday it was looking into the conduct of auditors of 1Malaysia Development Bhd (1MDB), a state fund that was wound up after losing billions of dollars in a scandal that erupted under the country’s previous government.
“The Securities Commission’s review of the conduct of auditors in relation to 1MDB audits is still on-going,” the regulator said in an emailed statement to Reuters, without identifying the firms involved.
The statement was issued following a South China Morning Post report on Friday that cited sources saying that the regulator was reviewing the work carried out by international auditors KPMG and Deloitte to see if they were “were aiding and abetting in this scandal, or merely negligent.”
KPMG and Deloitte did not respond to requests from Reuters for comment.
Once the review is completed, the Securities Commission and its Audit Oversight Board “will assess the findings and consider the appropriate next course of action,” the regulator said.
1MDB is the subject of money laundering investigations in at least six countries, including the United States and Malaysia. The US Department of Justice has alleged that over $4.5 billion was stolen from 1MDB by top officials of the fund and their associates between 2009 and 2014.
Deloitte audited 1MDB’s financial statements for 2013 and 2014, before it resigned as the fund’s auditor in early 2016.
It had taken over after 1MDB fired its earlier auditors, KPMG and Ernst & Young, authorities have said.
After the Justice Department filed civil lawsuits in 2016 over 1MDB, Deloitte said the 1MDB finance statements it had audited should no longer be relied upon.
In June last year, 1MDB said KPMG had informed the fund that 1MDB’s financial statements for the financial years ending March 2010, 2011 and 2012 audited by KPMG did not provide a true and fair assessment of the company.
Investigations into 1MDB were reopened in Malaysia after Prime Minister Mahathir Mohamad unexpectedly won a general election in May.
The 1MDB scandal was a major reason for former premier Najib Razak’s shock election loss. Najib has since been charged with graft over 1MDB, the fund he founded in 2009. He has pleaded not guilty and has denied any wrongdoing.
Goldman Sachs, which helped sell 1MDB bonds, is also facing criminal charges in Malaysia.
Malaysia investigating audit firms’ conduct in 1MDB scandal
Malaysia investigating audit firms’ conduct in 1MDB scandal
- Investigations into 1MDB were reopened in Malaysia after Prime Minister Mahathir Mohamad won a general election in May
- The 1MDB scandal was a major reason for former premier Najib Razak’s shock election loss
Closing Bell: Saudi main index closes in red at 11,183
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Monday, losing 44.79 points, or 0.4 percent, to close at 11,183.85.
The total trading turnover of the benchmark index was SR4.05 billion ($1.08 billion), as 69 of the listed stocks advanced, while 191 retreated.
The MSCI Tadawul Index decreased, down 6.63 points or 0.44 percent, to close at 1,504.73.
The Kingdom’s parallel market Nomu lost 328.20 points, or 1.36 percent, to close at 23,764.92. This comes as 22 of the listed stocks advanced, while 49 retreated.
The best-performing stock was Maharah Human Resources Co., with its share price surging by 7.26 percent to SR6.50.
Other top performers included Arabian Cement Co., which saw its share price rise by 6.27 percent to SR22.71, and Saudi Research and Media Group, which saw a 4.3 percent increase to SR104.30.
On the downside, the worst performer of the day was Arabian Internet and Communications Services Co., whose share price fell by 8.01 percent to SR207.80.
Jahez International Co. for Information System Technology and Al-Rajhi Co. for Cooperative Insurance also saw declines, with their shares dropping by 5.61 percent and 4.46 percent to SR12.79 and SR75, respectively.
On the announcement front, Etihad Etisalat Co. announced its financial results for 2025 with a 7.9 percent year-on-year growth in its revenues, to reach SR19.6 billion.
In a Tadawul statement, Mobily said that this growth is attributed to “the expansion of all revenue streams, with a healthy growth in the overall subscriber base.”
Mobily delivered an 11.6 percent increase in net profit, reaching SR3.4 billion in 2025 compared to SR3.1 billion in 2024.
The company’s share price reached SR67.85, marking a 0.37 percent increase on the main market.
