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
Saudi minister launches $810m infrastructure and industrial projects in Sudair
RIYADH: Minister of Industry and Mineral Resources and Chairman of the Board of the Saudi Authority for Industrial Cities and Technology Zones, known as MODON, Bandar Alkhorayef, launched capital projects valued at approximately SR3 billion ($810 million), covering infrastructure, water, electricity, and ready-built factories.
He also oversaw the signing of several supporting industrial contracts in Sudair City for Industry and Businesses in the presence of MODON's CEO, Majed Al-Argoubi.
The announcement came during the minister’s visit to Sudair City for Industry and Businesses, where he inaugurated a number of infrastructure development projects worth SR1.8 billion.
These included upgrades to road networks and water and sewage systems, construction of a 12,500-cubic-meter water reservoir, and the launch of the fourth phase of infrastructure development, covering 6 million sq. meters.
The visit also included a review of the construction of a 200 megavolt-amperes electrical substation, as well as a project to build 44 ready-built factories to enhance the city’s readiness to attract industrial investment and improve services for entrepreneurs.
The minister also witnessed the signing of six industrial and investment contracts and a memorandum of understanding with the private and public sectors, with total investments exceeding SR1billion.
The agreements are part of the authority’s efforts to create an attractive investment environment locally and internationally, support the localization of industries, and enhance local content, as well as improve the quality of life in industrial cities.
In the field of human capital development, MODON signed an SR16 million contract with the Majmaah Chamber of Commerce to establish a state-of-the-art training center. The hub aims to develop specialized national competencies that support the growth of the industrial sector and includes an incubator dedicated to the children of industrial city employees.
The series of partnerships concluded with a MoU with AJEX, which will provide shared logistics and transport services at Sudair City for Industry and Businesses.
The initiative is designed to enhance the quality of logistics services for investors, a critical factor in enabling sustainable industrial sector growth.
These partnerships align with the objectives of the National Industrial Strategy, which seeks to build an advanced industrial base, strengthen national supply chains, enable high-value-added industries, and increase the industrial sector’s contribution to gross domestic product.
