Report: Deloitte fails to challenge SC’s RM2.2m fine over audit of 1MDB subsidiary

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Report: Deloitte fails to challenge SC’s RM2.2m fine over audit of 1MDB subsidiary’s RM2.4b Islamic bond

KUALA LUMPUR, Dec 24 — Audit firm Deloitte PLT today failed at the High Court to challenge the RM2.2 million fine imposed by regulator Securities Commission (SC) last year over alleged failures linked to the audit of a 1Malaysia Development Berhad (1MDB) subsidiary, a report has said.

According to news portal Malaysiakini, High Court judge Datuk Seri Mariana Yahya today decided that the RM2.2 million fine was valid and dismissed Deloitte’s court challenge.

On January 30, 2019, the SC reprimanded Deloitte, and imposed  RM2.2 million in penalties on the audit firm for four breaches of the law over its failures to comply with the Capital Markets and Services Act 2007 (CMSA) over its audit of a RM2.4 billion Islamic bond issued by 1MDB unit Bandar Malaysia Sdn Bhd (BMSB).

Bonds are typically where the company that issues it takes on debts to raise funds, with the company required to eventually pay the full sum of amount borrowed along with regular interest payments.

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