Prosecutors are asking the accounting firm to pay at least $600 million and transfer 524 million euros. The work was completed by KPMG Lower Gulf, which denies the allegations. Abraaj managed about $14 billion at its peak, but declined in 2018 amid allegations of money diverted from investors.
US prosecutors suspect that the fund’s founder, Arif Naqvi, stole more than $250 million. He is under house arrest in London and faces up to 291 years in prison if extradited to the United States.
KPMG has audited the investment fund accounts for six years. The CFO of Abraaj previously worked for an accounting firm. He has already been fined millions for his involvement in the scandal.
KPMG’s head office has expressed its full support for its local office in the Gulf region. “Extensive measures have been taken to enhance the company’s culture and business operations,” the company said.
It’s the 1,000th time that audit firms have been accused of wrongdoing. For example, the “Big Four” – KPMG, PwC, EY and Deloitte – are accused in the UK of not anticipating many bankruptcies.
These include the demise of British construction group Carillion, department store chain BHS, and tour operator Thomas Cook. Bankruptcies have led to huge job losses. EY also took part in the famous demise of the German Wirecard.
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