KUALA LUMPUR, Jan 30 — The Securities Commission Malaysia (SC) has reprimanded and imposed penalties on Deloitte PLT (Deloitte) for four breaches related to the RM2.4 billion sukuk murabahah programme issued by Bandar Malaysia Sdn Bhd (BMSB) in 2014.

The commission said Deloitte was the statutory auditor for BMSB and 1MDB Real Estate Sdn Bhd (1MDB RE) for the 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 programme and the immediate holding company of BMSB.

1Malaysia Development Bhd (1MDB) was the holding company of 1MDB RE and BMSB.

In a statement today, the SC said Deloitte had committed two breaches under Section 276(3)(b) of the Capital Markets and Services Act 2007 (CMSA) for its failure to immediately report to the commission irregularities which may had a material effect on BMSB’s ability to fulfil its obligations in repaying sukuk holders any amount under the sukuk programme.

It said the breaches committed by Deloitte were serious in nature as the audit firm failed to discharge its statutory obligations despite having included the following in BMSB’s and 1MDB RE’s Audited Financial Statements (AFS):