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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glissantia
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glissantia

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
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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
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tunglang

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.