KPMG’s Dubai Office Ordered to Pay US$ 231 Million
Posted on 04/19/2023
A Dubai court has leveled KPMG with an order to pay US$ 231 million over a dispute regarding its handling of the Abraaj Group. The Abraaj Group once spanned six continents, but is now liquidated. Abraaj’s former CEO is being extradited to the U.S. for fraud charges after losing his challenge. Now an investor group wants KPMG to pay, claiming their loss was due to the accounting information KPMG produced. KPMG is accused of failing to meet accounting standards in regards to Abraaj.
A court statement spelled out the complaint: “The court has concluded from the papers, documents, and the report of the appointed expert committee, that it is confident that the auditing company had committed many violations when it audited the financial statements of the investment fund.” KPMG Lower Gulf denied any wrongdoing or malpractice in a statement. Last year, Dubai’s authorities charged KPMG with US$ 2 million in fines over Araaj. KPMG Lower Gulf says it can’t be blamed, pointing out that “senior management of Abraaj intentionally sought to mislead or deceive KPMG, the regulator, and investors over a period of years.”
Big fines are becoming an expensive problem for the firm. In February, KPMG’s UK business settled a £1.3 billion suit over construction company Carillion. It is not known what KPMG paid to settle the claim.
