The Malaysian govt has fined Deloitte RM2.2 million (US$530,000) over breaches in auditing a 1MDB linked firm.
Deloitte had been the statutory auditor for Bandar Malaysia and its holding company, 1Malaysia Development Bhd Real Estate (1MDB RE), the Malaysian Securities Commission said in a statement on Wednesday.
Deloitte was found to have “failed to discharge its statutory obligations,“ despite having found irregularities when auditing Bandar Malaysia and 1MDB RE in 2015 and 2016.
Calling the breaches “serious in nature,“ the financial regulators said they “may have [had] a material effect on the ability of Bandar Malaysia to fulfil its obligations in repaying sukuk holders any amount under the Sukuk Murabahah Programme.”
Sukuks are a financial certificate, similar to bonds in conventional banking, that are considered to be compliant under Islamic law.
1Malaysia Development Berhad, which is the holding company for both Bandar Malaysia and 1MDB RE, is the subject of a sweeping international investigation across six countries over allegations that billions of dollars had been allegedly misappropriated by high-level Malaysian officials.
The regulator outlined four breaches. It said they were committed under the Capital Markets and Services Act. The firm was fined 2 million Malaysian ringgit, which is the maximum amount provided for under the act.
A further 200,000 Malaysian ringgit was levelled against the firm for failing to send a copy of the audited final report to independent corporate trustee company, MTrustee, seven days after the report was furnished to Bandar Malaysia.
No comments:
Post a Comment