Malaysian regulator fines Deloitte for not flagging 1MDB-linked irregularities
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E-mail Xinhua, January 30, 2019
KUALA LUMPUR, Jan. 30 (Xinhua) -- Malaysian regulator said Wednesday that Deloitte was fined 2.2 million ringgit (about 540,000 U.S. dollars) for failing to report irregularities involving the 2.4 billion ringgit bond issued by a subsidiary of state investment fund 1Malaysia Development Berhad (1MDB).
In a statement, the Malaysian Securities Commission said Deloitte failed to discharge its statutory obligations despite having found irregularities when auditing Bandar Malaysia and its holding company, 1MDB Real Estate (1MDB RE), in 2015 and 2016.
1MDB RE, now known as TRX City, was one of the third party security providers of the Islamic bond or sukuk program and the immediate holding company of Bandar Malaysia.
1MDB was the holding company of 1MDB RE and Bandar Malaysia.
The Securities Commission said Deloitte had committed two breaches for its failure to immediately report irregularities which may had a material effect on Bandar Malaysia's ability to fulfill its obligations in repaying bond holders.
The Securities Commission imposed a total fine of 2.2 million ringgit for the breaches, the maximum fine provided under the country's laws.
The commission added the breaches committed by Deloitte were serious in nature as the audit firm failed to discharge its statutory obligations. Enditem
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