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| Coeni Van Beek |
As the Global Leader for Ethics, how long have you known about the continuing fraud perpetrated by PwC in Malaysia with regards to the non disposal of PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) to IBM Corp, when PricewaterhouseCoopers LLP sold its global management consulting and technology services business to IBM Corp back in 2002.
This has been ongoing for more than 8 years now, and it begs disbelief that no one has raised any questions on this fraudulent act, especially when it contravenes the no-action letter released by the SEC with regards to the sale.
1. Does this not impact the global audits done by PwC for its client, IBM Corp? And what about the audits of IBM in Malaysia by PwC?
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| Mr Chin Kwai Fatt and Datuk Johan Raslan of PwC Malaysia in happier days |
2. How is it that Mr Chin Kwai Fatt, the MD of PwC Malaysia is a Director in PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) till today? Who allowed Malaysia to be the exception to the global sale of PwC consulting business to IBM?
3. How is it that Ahmad Johan bin Mohammad Raslan and Lee Tuck Heng remain as shareholders of PricewaterhouseCoopers Consulting Sdn Bhd (464379-U),which should be under the Global Business Services division of IBM, when PricewaterhouseCoopers is the Auditor for IBM Malaysia Sdn Bhd?
4. PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) is being used to hide hundreds of millions of dollars worth of contingent liabilities, pure and simple. The global audit on IBM Corp is worth hundreds of millions of dollars in fees as well, but doesn't this sleight of hand negate the audit, as it establishes a direct financial interest between the auditor and the client?
5. How is the renaming of PricewaterhouseCoopers Consulting (East Asia) Sdn Bhd, to PwC Consulting Sdn Bhd (289801-A), and its subsequent sale to IBM valid, when the contingent liabilities were kept hidden in the real consulting arm of PwC in Malaysia, namely PricewaterhouseCoopers Consulting Sdn Bhd (464379-U)?
6. Is the sale process that began in 2002 complete yet, seeing that PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) still exists, and if the sale is still technically incomplete, will this not make all the global audits of IBM Corp for the past 8 years suspect or invalid, if not downright illegal?
7. How is it that Mr Foong Weng Chee is named as a Director in PwC Consulting Sdn Bhd (289801-A), when he has his own accounting firm called Foong Weng Chee & Co, and has been running it since before 2002? What exactly was sold to IBM in Malaysia, when PricewaterhouseCoopers LLP sold its global management consulting and technology services business to IBM Corp back in 2002?
8. How long will it take for the Global Ethics and Business Conduct office to dissolve PricewaterhouseCoopers Consulting Sdn Bhd (464379-U), as there is no way this entity can be allowed to exist in any way, shape or form? One week? Two weeks?
9. Doing the right thing, the PwC way? This if from the very code of conduct for which you are the global leader.
Those who violate the Code or PwC policies and procedures
will be subject to disciplinary action, up to and includingdismissal. Disciplinary measures will also apply to anyone
who directs or approves infractions or has knowledge
of them and does not promptly move to correct them.
9.1. Is it against PwC or professional standards?
9.2. Does it feel right?9.3. Is it legal?
9.4. Will it reflect negatively on you or PwC?
9.5. Who else could be affected by this (others in PwC, clients,
you, etc.)?
9.6. Would you be embarrassed if others knew you took this
course of action?
9.7. Is there an alternative action that does not pose an
ethical conflict?
9.8. How would it look in the newspapers?
9.9. What would a reasonable person think?
9.10. Can you sleep at night?
10. Is there anyone working to resolve this fraud, and how much longer will it be allowed to continue, after having been hidden in plain sight for more than 8 years?
Some part of the Big Blue is even collaborating with local listed companies to defraud. Unfortunately, our courts are staffed with incompetent judges or with the wrong kind of competencies.
ReplyDeleteThis is the BIG game. The fall guys are the little people. PwC and all the financial agencies in Malaysia are packed with power brokers of the worst kind. They conspire to ignore the crimes of their ilk. PwC Global will tell you - "oh, this is a small transgression in a small third world country - and it really does not affect PwC worldwide in any way. Our people are looking into it. The problem will be solved in a few weeks." Or words to that effect. The reaction is always to try and sweep it all under the carpet as quickly as possible.
ReplyDeleteNeither PwC nor IBM or any global company is really serious about ethics or morality or legality or fairness. All the verbiage on these "virtues" are just there for "show". Its hogwash - for consumption by the "ignorant" masses. It is there for image purposes - while the senior most management old boys go about raping and stealing from the rest of us.
Are you really surprised at this? And you think that this is the only skeleton in PwC's or IBM's closet?? These guys have been upto no good all over the world since time immemorial. Its just that they are so powerful - nothing will come of exposes' such as yours. The rest of us have to just learn to live with it.
No action may be expected against anyone as all are leaders in their respective fields and well connected to the regulatory authorities.
ReplyDeletePower and money when combined have generally been exempt from all rules and laws and possibly immune from any legal action. This is worldwide culture of the corporate world.
Gursharan Singh C.M.I.I.A.
gursharan38@gmail.com
21.12.10
The Global Ethics Leader Coeni Van Beek should simply be replaced as it seems that he is unable to confront people who have either been intentionally involved in this or have been too relaxed otherwise. So basically Coeni does not seem "fit" for the position he is holding. PricewaterhouseCoopers, one of the greatest accounting firms, should not risk its name by keeping Coeni as the Global Ethics Leader since he seems to have been failing. He should be replaced him with someone who has a strong personality and has the guts to rise above all personal relations to get things straight before it is too late. Coeni can just be given a marketing function.
ReplyDelete