Saturday 26 January 2019 11:21 am

KPMG and Deloitte under investigation for role in 1MDB corruption scandal

International auditors KPMG and Deloitte are being investigated in Malaysia for their role in the 1MDB corruption scandal.

Malaysian authorities said today they are looking into the state fund’s auditors, without identifying the firms.

Read more: Goldman Sachs chief executive apologises to Malaysian people over 1MDB scandal

“The Securities Commission’s review of the conduct of auditors in relation to 1MDB audits is still on-going,” the regulator said.

It comes after a report in the South China Morning Post which cited sources saying that the commission was looking into the work of KPMG and Deloitte to see if they “were aiding and abetting in this scandal, or merely negligent.”

The auditors could not immediately be reached for comment.

The US Department of Justice claims that over $4.5bn (£3.4bn) was stolen by officials working on the 1MDB fund between 2009 and 2014.

Deloitte audited 1MDB’s finances in 2013 and 2014, but later said they were unreliable after the Justice Department filed civil lawsuits.

Equally, KMPG has withdrawn its support for the fund’s financial statements which it audited in 2010, 2011 and 2012.

Read more: Former Malaysian PM records soul ballad while awaiting 1MDB trial

The scandal, one of the largest corruption cases in world history, led to the defeat of Prime Minister Najib Razak last year. He has been charged, but has pleaded not guilty.

Meanwhile Goldman Sachs, which helped sell 1MDB bonds, is facing criminal charges in Malaysia.