Deloitte goes to court over SC’s RM2.2 mil fine

(AFP pic)

PETALING JAYA: Deloitte PLT is seeking a judicial review following the decision by the Securities Commission Malaysia (SC) to dismiss its application for a review of the RM2.2 million fine.

The penalty was issued following the audit firm’s alleged failure to report breaches linked to the RM2.4 billion sukuk issued by Bandar Malaysia Sdn Bhd (BMSB).

According to theedgemarkets.com, Deloitte said it was disappointed the SC had dismissed its application for a review of the administrative sanctions and retained the sanctions imposed.

“On Nov 14, 2019, we filed for a judicial review against the SC’s decision to dismiss our application to review the administrative sanctions, to seek clarity in the application of the relevant laws for the benefit of us and all stakeholders in the capital markets,” the business portal quoted Deloitte as saying.

In January, the SC had slapped a fine on Deloitte following an investigation over its alleged involvement in the 1MDB scandal.

Deloitte was the statutory auditor for Bandar Malaysia and 1MDB Real Estate Sdn Bhd (1MDB RE) for their financial years ended March 31, 2015 to 2016.

1MDB RE, now known as TRX City Sdn Bhd, was one of the third-party security providers of the Sukuk Murabahah Programme and the immediate holding company of Bandar Malaysia.

1MDB is the holding company of 1MDB RE and Bandar Malaysia.