Paltry fine for 1MDB auditors just a rap on the knuckles

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This statement by Aliran puts the spotlight on the 1MDB auditors, who appear to have got off rather lightly.

Aliran is taken aback by the paltry RM2.2m fine imposed by the Securities Commission against Deloitte for four breaches related to 1MDB.

We are even more flabbergasted that Deloitte is consulting its lawyers on whether to apply to the Securities Commission for a review.

The Securities Commission had described the breaches as “serious in nature”. Deloitte, it said, had “failed to discharge its statutory obligations” despite the firm having issued a qualified auditor’s report, indicating it had reservations on material issues.

The breaches were in relation to a 2014 issue of RM2.4bn under a “sukuk murabahah” scheme to raise funds by Bandar Malaysia Sdn Bhd, a 1MDB unit.

In the context of the massive losses suffered by 1MDB, which has cost the Malaysian public dearly, the fine of RM2.2m is a pittance.

If anything, the Securities Commission should have taken sterner action against Deloitte. At the very least, the partners responsible for overseeing the audit and signing the accounts should be prosecuted and have their licences revoked. Full statement on the Aliran website


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Song
Song
23 Feb 2019 10.26am

The US Justice Department on Friday said it had filed complaints seeking forfeiture and recovery of approximately US$38 million in assets associated with its 1Malaysia Development Berhad – or 1MDB – case, bringing the assets now subject to forfeiture to a total of about $1.7 billion.

Song
Song
20 Feb 2019 3.33pm

Paul Stadlen, once a media advisor to Datuk Seri Najib Tun Razak, is expected to be slapped with money laundering charges, according to The Edge.

He is expected to be charged in abstentia as he fled Malaysia after Pakatan Harapan won the elections last May.

The business daily quoted sources who said that the charges involve a sum of RM15mil, with investigators tracing the source of money to the former prime minister.

https://www.thestar.com.my/news/nation/2019/02/20/report-najibs-pr-guy-paul-stadlen-to-be-charged-for-k omoney-laundering/#mcqvHbdc3kms5wB8.99

Ravi
Ravi
18 Feb 2019 4.13pm

There has been a drastic shift in popularity of top political leaders after the general election last year, with former prime minister Najib Abdul Razak now way ahead of the pack.

According to a study by advertising firm Nobleman Creations, this was measured by analysing the “total engagement” and growth in ‘likes’ on the Facebook pages of these personalities, comparing data in the months of May 2018 and January 2019.

glissantia
glissantia
8 Feb 2019 1.28pm

What about the Big 5 accounting firms, the rating agencies, international banks, etc. They have been creating a lot of damage for the masses. As long as they don’t cross the line by fingering the elite, they get away with token “settlements” meant to assauge outrage. A number of big banks – always full of advice for others – have been and are still engaged in (a) money laundering for dictators, narcotics gangs, arms smugglers and “terrorists” (intelligence agencies) (b) destabilising entire countries through speculation. At least half of the world’s problems would immediately be resolved by eliminating these parasites.… Read more »

kana vandort
7 Feb 2019 6.55pm

Why the auditors only? Who was in charge of the Securities Commission at the material time? He is the on… https://t.co/FIhyNP9gfp

tunglang
tunglang
7 Feb 2019 7.35am

Rule of Law? Anything manmade law can be manipulated, influenced & rendered less bite.
Better to have no laws & let the seekers of justice take action.

Song
Song
20 Feb 2019 3.34pm
Reply to  tunglang

No law? How about law of the jungle in Belum?