In mid-May, Serba Dinamik Holdings Berhad was thrust under the harsh lights when it was embroiled in audit issues with its external auditor, KPMG when it flagged alleged discrepancies on its client’s financial accounts. The matter escalated to a new high when Serba Dinamik turned around and pursued legal action against KPMG.
From here, things took on a downward trend for KPMG when subsequently the Malaysian government and 1Malaysia Development Bhd (1MDB) filed a US$5.6 billion suit against 44 partners of KPMG Malaysia for alleged breaches and negligence linked to a corruption scandal at the fund.
Battling a few legal suits, KPMG’s troubles seem far from over as Tony Pua, the Damansara MP said that the finance ministry should remove KPMG Malaysia as the auditor for any company where Putrajaya has direct shareholder control following the government’s decision to sue the audit firm. He said KPMG Malaysia must also be excluded from taking part in government tenders until the lawsuit has been settled.