Big Money, Big Pay: KPMG Settles for $80.11 M Over 1MDB Auditing Blunders
Malaysia’s Finance Ministry just announced that the auditing giant KPMG will cough up a whopping $80.11 million (about S$108 million) to settle every claim linked to its “fiduciary duties” on 1Malaysia Development Berhad (1MDB) accounts from 2010‑2012.
The Deal in a Nutshell
- Settlement resolves a lawsuit that was filed in July against the auditor.
- KPMG will move quickly to pay the full amount.
- All parties—including the Malaysian government—sign off on the agreement.
- The goal is to let everyone “move forward” and help the firm rebuild public trust.
Why It’s a Big Deal
The Finance Ministry pointed out that this payout is over 800 times the audit fees KPMG earned in those years. In plain English: the money being paid is more than the firm’s actual earnings from the auditing gigs. It’s also one of the largest settlements ever reached by an audit firm in Southeast Asia around 1MDB.
The Backstory
On July 6, the government, 1MDB, and its subsidiaries sued 44 current and former partners at KPMG for a staggering $5.6 billion. KPMG slapped back, saying they would “vigorously” fight the suit, but in June the country quietly received $80 million from Deloitte—the firm that took over as 1MDB’s auditor after KPMG—to settle disputes.
What This Means for Everyone
With the settlement in place, KPMG can finally step away from the legal turbulence and redirect its focus toward restoring the public’s faith in financial oversight. Meanwhile, the government can mark this one off its long-to-be-closed ledger of litigations.
All in all, a hefty chunk of cash plus a fresh start—just what both sides needed. Let’s hope the lesson is never again to let a giant audit firm misread the fine print.
