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KUALA LUMPUR: The decision of the Securities Commission (SC) to impose a fine of 2.2 million ringgit on Deloitte PLT was appropriate and proportionate to the severity and gravity of the infractions committed by the auditing firm, said High Court Judge Datuk Seri Mariana Yahya.
By dismissing Deloitte’s request for a judicial review to challenge the CS decision, he said, the court was of the opinion that the CS had not made a mistake in the law or did not take into account the relevant consideration in reaching its decision.
“The defendant (SC) has applied the proper construction and interpretation of the pertinent legislative provisions in light of the defendant’s duties and responsibilities as a regulator of the capital markets.
“The applicant has not shown in any case that the decisions of the defendant or any part of them amount to a decision that no reasonable authority could have reached.
“Said decision does not suffer from legality deficiencies and the objection grounds raised by the plaintiff do not reveal any other defect for this court to take into consideration through judicial review.
“Consequently, the court dismisses the applicant’s request for judicial review costing RM20,000,” he said.
Attorney Datuk Malik Imtiaz Sarwar represented Deloitte, while attorney Brendan Navin Siva appeared for the SC.
Malim Imtiaz, when meeting after the procedure, said that he would consult his client if he appealed against the decision.
It was previously reported that the SC fined Deloitte a total of RM2.2 million for four defaults related to the RM2.4 billion bond (sukuk) issued by Bandar Malaysia Sdn Bhd (BMSB), a subsidiary of 1Malaysia Development Berhad ( 1MDB) in 2014..
Deloitte was the statutory auditor of BMSB and 1MDB Real Estate Sdn Bhd (1MDB RE), now known as TRX City Sdn Bhd, for their financial years ending March 31, 2015 to 2016.
On November 14, 2019, Deloitte filed the request for judicial review against the SC’s decision to dismiss its request for review of administrative sanctions and withheld the sanctions imposed.
On November 25, 2019, Judge Mariana granted Deloitte permission to initiate her request for judicial review.
In its request, the auditing firm sought to reverse the SC’s review decision on August 19, 2019, which upheld the fine of Ringgit 2.2 million against Deloitte imposed on January 30, 2019.
Deloitte also requested a certiorari order to annul the SC’s review decision to impose the fine, in addition to seeking the return of the RM2.2 million it paid as a fine to SC in the event that the court rules in favor of its request. judicial review. , costs and any additional orders that the court considers convenient and appropriate.Called
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