Court: “KPMG” violated the Fund’s auditing rules
A Dubai court has ordered KPMG Lower Gulf to pay more than $231 million to a group of investors who claim they lost money due to problems with the company’s poor audit of a fund they invested in, according to the Financial Times, which was seen by Al Arabiya.net. “.
The ruling, handed down late last month, found the company breached international auditing standards by approving the financial statements of an infrastructure fund run by the collapsed private equity firm, the Abraaj Group.
The newspaper reported that the court concluded from the papers, documents and report of the appointed committee of experts that it revealed to it that the auditing company had committed many violations when it audited the financial statements of the investment fund.
In turn, KPMG Lower Gulf said in a statement that it believes it has strong grounds for appeal and has referred the case to the Court of Cassation or the Supreme Court.
KPMG did not disclose whether the fine would be covered under insurance or if its international network would step in to help with the costs.
Bloomberg reported in October that Dubai’s financial watchdog had fined KPMG LLP $1.5 million for its audit of Abraaj Capital Limited, a unit of the former private equity firm in emerging markets that collapsed after being accused of fraud. By deceiving investors and misusing their money.