Part 2 - PwC is hiding fraud, here is the evidence!

On the 2nd of May, 2009, the Business Section in The Star newspaper carried an article titled "When Speed Counts" under the byline of its Deputy Business Editor, Errol Oh. The entire article may be read here.

In part 1, we showed that  PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) is audited by Roger Yue, Tan & Associates. 

One of the shareholders cum Directors in PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) is Dato' Johan Raslan, the Executive Chairman of PwC Malaysia.

Ironically, Dato' Johan Raslan is also a member of the Securities Commission of Malaysia's Corporate Governance Consultative Committee. 

So the SC charges an auditor in court for abetting a client in submitting false information , but at the same time, a member of the SC's Corporate Governance Committee is using the very same auditor for a company, PricewaterhouseCoopers Consulting Sdn Bhd (464379-U), in which he is a Director/shareholder. A company whose very existence is fraudulent. 

The high profile Enron and WorldCom financial scandals saw the enactment of the Sarbanes-Oxley Act of 2002 in the USA, in order to protect shareholders and the general public from accounting errors and fraudulent practices in the enterprise.

Sarbanes–Oxley contains 11 titles that describe specific mandates and requirements for financial reporting. Each title consists of several sections, summarized below.

1. Public Company Accounting Oversight Board (PCAOB)
   

   Title I consists of nine sections and establishes the Public Company Accounting Oversight Board, to provide independent oversight of public accounting firms providing audit services ("auditors"). It also creates a central oversight board tasked with registering auditors, defining the specific processes and procedures for compliance audits, inspecting and policing conduct and quality control, and enforcing compliance with the specific mandates of SOX.

Point 2 is Auditor Independence. Three is Corporate Responsibility. Analyst Conflicts of Interest, White Collar Crime Penalty Enhancement and Corporate and Criminal Fraud Accountability are among the other areas covered in the SOX, as it is also called. (from Wikipedia)

We will leave things at that for now.

Wishing everyone a Very Happy New Year, and rest assured that we will be back in January 2011 with more revelations, for a better Malaysia.