Press release Ministry of Justice of the Republic of Kazakhstan: KPMG Withdraws Audit Reports for Three Years of Stati Falsified Financial Statements - 27 August 2019
Country
Year
2019
Summary
By letter dated 21 August 2019, KPMG Audit LLC ("KPMG") notified the Republic of Kazakhstan that they have withdrawn eighteen (18) audit reports covering three (3) years of financial statements issued by companies controlled by Anatolie Stati ("Stati"), saying that "reliance should not be placed on the audit reports issued by KPMG Audit LLC." KPMG took this extraordinary action after reviewing evidence showing that material misstatements existed in the Stati financial statements, that these misstatements were based on knowingly false representations by Stati to KPMG, and that Stati had relied on the KPMG audit reports, the falsified financial statements, and other false and fraudulent information, to obtain the December 2013 ECT Arbitral Award against the Republic in the amount of circa $500 million.
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