Errol Oh, you are a good journalist, BUT this time, you have let all Malaysians down.

P. Gunasegaram, Managing Editor of The Star 

Errol Oh, Deputy Editor Bizweek, The Star

Gentlemen,

You had a golden opportunity to ask Nik Hasyudeen of the Audit Oversight Board (AOB) some burning questions, but in this instance you had set aside objectivity and let the opportunity slip away.

Firstly, there was no lawful mechanism for the AOB to have given out the forms and applications before the 1st of April, 2010. As the Securities Commission states in its website,"The Audit Oversight Board (AOB) is established under Part IIIA of the Securities Commission Act 1993. Part IIIA was incorporated into the Securities Commission Act 1993 by virtue of the Securities Commission Amendment Act 2010 (the Act). 


The Act shall come into force on 1 April 2010. " 

Furthermore, the Audit Oversight Board Handbook for Registration itself states, First Issued On : 1 April 2010.


Why then was Nik Hasyudeen allowed to get away with saying,"We approved the applications (on April 1) because we were satisfied that they met the criteria. We were able to make these decisions because we had made all the preparations.” 


How could the AOB and Nik Hasyudeen have made the preparations before the 1st of April when the Oversight Board had not even come into existence, and he was not even appointed yet? Are we dealing with time travel here?


Secondly, the law that allows for the AOB to collect the fees for registration only came into force on the 15th of April, 2010, so how could the AOB have collected any fees and approved any registrations before the 15th of April, even if they were able to conclude any and all inspections and necessary checks?

How can we blame the FDI for drying up when even the regulators in this country do not follow the law!


Mr Gunasegaram, just 3 days ago you asked some burning questions (your own words) of Petronas.

Mr Errol Oh, you did the same on the function of PDP's, raising the question to Gamuda, MMC and others.

But why was this objectivity set aside in the interview with Nik Hasyudeen and the AOB? Is The Star now doing a repair job for the AOB, seeing how the AOB had botched up on their very first day at the office? Is The Star's job now to paint the AOB with a new brush?

If you believe you are doing anyone any favours by setting aside your objectivity, then you are wrong. Why are you putting your credibility on the line for the AOB's mess up?

Or do you believe that you can do whatever you wish as a newspaper because you have a near monopoly, and the readers have no choice but to accept any spins that the paper wishes to put out?

Mr Gunasegaram, as the MD of Starbiz, if you are called by any of your counterparts from Reuters or Bloomberg on the two questions you shielded the AOB from, how would you answer them?

In 2004, Abdullah Badawi led the BN to a landslide victory as the Malaysians were willing to buy whatever Badawi was selling at that time. This is 2011, and the world is a different place now. Why have you let all Malaysians down by setting aside your objectivity as journalists?

Look at Benghazi, and try to capture just a little of the spirit that now liberates that city. Become free, embrace objectivity once again, and stop playing to the tune of your part time masters. You have a duty to all Malaysians, and that duty exceeds all others.

BTW, are you the same Errol Oh we remember playing hockey with a long time ago?

Dear PM Najib, will this same nonsense by regulators be tolerated by the Singapore Government?

The vast majority of us still support you, but you will steadily lose support if you turn a blind eye towards matters like this. . 

Fact 1: How was the AOB able to release the handbook for registration and the forms before the 1st of April, when Nik Mohd Hasyudeen and the rest of the board were themselves only appointed on the 1st of April 2010, and was announced in the media on the 2nd of April, 2010?

Fact 2: How could the AOB register any auditor on the 1st of April when the law to collect the fees for registration was only signed into force on the 13th of April by the Second Finance Minister, to take effect on the 15th of April?

PM Dato' Seri Najib Tun Razak

Singapore PM, Mr Lee Hsien Loong

Singapore's Minister for Finance, Mr Tharman Shanmugaratnam, a man that brooks no nonsense. 

Monday February 28, 2011, The Star, Business Section

Five audit firms run afoul of board

By ERROL OH 

They failed to register first with Audit Oversight Board before becoming auditors of public interest entities

PETALING JAYA: Five accounting firms were the first to run into trouble with the Audit Oversight Board (AOB) because they had accepted appointments last year as auditors of public interest entities (PIEs) without first registering with the board.


Three listed companies Brite-Tech Bhd, CN Asia Corp Bhd and Mintye Industries Bhd were among those that had engaged these firms when it was illegal for them to act as auditors of PIEs.


After detecting these cases in its monitoring of the AGMs of PIEs, the AOB sent show-cause letters to the five firms, asking them to explain why they had failed to register with the board before agreeing to become auditors of the PIEs. However, because the regulatory framework for auditors was just introduced last April, the firms have been spared stiff penalties and are allowed to audit the financial statements of PIEs.




Nik Mohd Hasyudeen Yusoff says the AOB had dealt swiftly with the five firms.
AOB executive chairman Nik Mohd Hasyudeen Yusoff said that the idea behind setting up the board was to ensure robust oversight of auditors. As such, it viewed any breach of law seriously.


He added that the AOB had dealt swiftly with the five firms and had sent “a very strong signal” that it would not tolerate such incidents in the future.


“Having considered the firms' explanations and considering that this is the first year that the new law is implemented, we issued warning letters to them. We also require them to do certain reporting to us on a periodical basis to make sure that they are in compliance with the law. They are now registered. These are issues that we faced at the early stage of implementing this new law,” he told StarBiz.


The Securities Commission Act 1993 was amended last year to provide for the establishment of the AOB and for related matters. Among other things, the new rules require that an auditor of a PIE be registered with the AOB. PIEs include listed companies, banking and financial institutions (including Islamic banks and development financial institutions), insurance companies and takaful operators, and holders of Capital Market Services Licences (such as securities and futures trading firms, and fund management companies).


The amendments came into effect on April Fools' Day last year, which was also the day the AOB commenced operations. This meant that auditors that were due to be reappointed in AGMs scheduled to be held in the first few days of April had to quickly register with the board.


Given that many of their audit clients are PIEs, the larger firms were naturally among the earliest to be registered. For example, Ernst & Young (EY) and PricewaterhouseCoopers (PwC) were registered on April 1 itself, while KPMG got into the AOB register of auditors on April 9.


Mohd Hasyudeen explained that the board could register EY and PwC on its first day because a lot of groundwork had been done earlier to ensure that the firms knew the criteria for registration and could thus submit applications with the necessary information and documentation.


He said: “We approved the applications (on April 1) because we were satisfied that they met the criteria. We were able to make these decisions because we had made all the preparations.”


Prior to April, the Securities Commission had made available the registration handbooks and forms, and had fielded enquiries about the registration process.




Another factor that figured in the AOB's speedy approval of registration applications was the need to avoid disruptions in the PIEs' appointment of auditors.


“AGMs had already been scheduled and we did not want to see companies having to postpone the meetings and incurring costs just because the auditors could not accept appointments after failing to register in time.


“We pre-empted all these issues to make sure there was a smooth transition and implementation. We are in the confidence-building business. News that companies have failed to appoint auditors may not be positive. So we cautiously manage that process,” Mohd Hasyudeen said.


For the board, there is an additional layer of assurance in the fact that a criterion for AOB registration is that the auditors must already be approved by the Finance Ministry under Section 8 of the Companies Act 1965. Under the Companies Act, the Finance Minister gives such an approval to a company auditor when satisfied that the applicant is “of good character and competent to perform the duties of an auditor under this Act”.


Mohd Hasyudeen pointed out that the registration process is not the only time that the auditors are subject to the AOB's scrutiny. “If the auditors are registered and subsequently we find that they have not been truthful to us say, they have submitted misleading information or have omitted important information we will act against them. That's why we conduct inspections of auditors,” he added.


The AOB declined to provide details of the five accounting firms that have been given warnings. However, by comparing announcements on the Bursa Malaysia website with the board's register of auditors, StarBiz has found that three firms had been appointed auditors of listed companies before they had been registered with the AOB (see table on B1). Another three were appointed on the same day their applications for registration were approved.


On the status of the latter three, Mohd Hasyudeen said: “We registered them because we were satisfied that they had fulfilled our requirements. We take it that they were each registered on that particular date.”


Dato' Seri Najib,

Fact 1: How was the AOB able to release the handbook for registration and the forms before the 1st of April, when Nik Mohd Hasyudeen and the rest of the board were themselves only appointed on the 1st of April 2010, and was announced in the media on the 2nd of April, 2010?

"Friday April 2, 2010, The Star, Business Section


SC names Nik Hasyudeen as AOB exec chairman


PETALING JAYA: The Securities Commission (SC) yesterday named the executive chairman and six non-executive members of the Audit Oversight Board (AOB), whose appointments are effective immediately.


“I’m very honoured to be appointed by SC as the first AOB chairman,” he told StarBiz.


He said the AOB was helmed by a team of professionals appointed by SC because of their credentials, maturity and vast experience in various fields.


“The SC has entrusted us with an important role to create greater trasparency in financial reporting of PIEs and professionalism in auditing in the development of a stronger capital market,” he said.


The six non-executive AOB members are:


lFinancial Reporting Foundation chairman Datuk Ali Abdul Kadir;


·Bank Negara assistant governor Nor Shamsiah Mohd Yunus;


·SC executive director (strategy and development) Goh Ching Yin;


·Companies Commission of Malaysia chief excutive officer Datuk Azmi Ariffin;


·Cheong Kee Fong & Co partner Cheong Kee Fong; and


·Teak Capital Sdn Bhd managing director Chok Kwee Bee."

Fact 2: How could the AOB register any auditor on the 1st of April when the law to collect the fees for registration was only signed into force on the 13th of April by the Second Finance Minister, to take effect on the 15th of April?

PwC Malaysia's Public Relation and Media Bungle.

Sridharan Nair of PwC, spoke about the re-branding, even though the low key unveiling was done by Chin Kwai Fatt

On the 4th of August, 2010, Ms Loh Lay Choon raised some concerns on the Audit Oversight Board mandate, as reported here.

"PricewaterhouseCoopers Malaysia partner Loh Lay Choon, who presented some comments on the implications of the AOB’s mandate, said costs billed to clients would almost certainly rise as audit firms that qualified to audit public interest entities were held to higher standards.

“To what extent do the specifics at the engagement level get shared?” she asked, adding that the issue of confidentiality needed to be ironed out. The AOB commenced inspections of audit firms this month."

Ms Loh Lay Choon, why did you neglect to question En Nik Mohd Hasyudeen Yusoff, the Chairman of the AOB, on the miraculous registration of PricewaterhouseCoopers by the AOB on its very first day of operations?

If you are so concerned about the AOB affecting the way the auditing 'business' is done, then you could have pulled the carpet from under Nik Hasyudeen by pointing out that the registration the board had approved on the very same day the board members themselves were announced, is a physical and legal impossibility.

You could have asked him questions on why a director of PwC Malaysia was appointed as the Director for the AOB, and how the AOB managed to collect the fees for registration on the 1st of April when the law to collect the fees was only signed by the 2nd Finance Minister on the 13th of April?

You could have asked him on how much of a role did Chin Kwai Fatt play in the choice of people in the AOB?

There were so many questions you could have raised to protect the "PwC Way", but you didn't did you?

Ms Loh Lay Choon, seated second from left.

Ms Loh Lay Choon, then you have to be the Alternate Chairman of the committee that announces the National Annual Corporate Report Awards, when your own MD Mr Chin Kwai Fatt has been signing false declarations for the annual report of PricewaterhouseCoopers Consulting Sdn Bhd (464379-U). Did you think that the Malaysian Public can be fooled so easily?

Mr Sridharan, you sent out a statement about PwC's new logo. Did you also send out a statement on why your firm's Senior Partners chose to appoint 'sham Directors' who had absolutely nothing to do with PwC's consulting business for the firm renamed as PwC Consulting Sdn Bhd (289801-A), which was then disposed of to IBM Corp as if it was the real consulting arm of PwC Malaysia?

Did you send out a statement on why the continued control of PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) by Chin Kwai Fatt & Co to defraud its creditors is not wrong in any way shape or form? Did you explain why there is no conflict of interest when PwC does the audits for IBM in Malaysia even though your firm's Senior Partners are technically directors of a company that was sold to IBM 9 years ago?

Ms Ng Yin Ching, did you take the responsibility to explain the questions surrounding PwC when you spoke about Corporate Responsibility to the media?

Ms Ng Yin Ching, did you think no one would notice that the Chairman for the Institute of Corporate Responsibility as well as PwC Malaysia, Dato' Johan Raslan, was conspicuously absent from this year's awards? Did you think that the Malaysian Public will accept whatever is said by anyone representing PwC on matters that involve words like Responsibility and Ethics when none of the spokespersons dare to face the public and answer the many allegations against the bosses in PwC Malaysia?

PwC Malaysia must understand that this Public Relation exercise of trying to show normalcy and 'business as usual' to the general public just makes the entire firm look like it practices hypocrisy and not accountancy.

Do the right thing. Stop the ongoing fraud involving your firm and bring to book the people involved. Don't  think that the slight posturing you are attempting by dishing out awards and talking about anything other than the fraud and corrupt practices involving your Senior Partners, with the Media and other organizations is going to save your firms' reputation.

The bitter fallout between Dato' Johan Raslan and Chin Kwai Fatt.

Once close friends, Johan and Chin are no longer seeing eye to eye.

Dato' Johan Raslan and Chin Kwai fatt both attended the University of Hull, and destiny brought them together once again at PricewaterhouseCoopers in Malaysia. The fairy tale in now ending.

Dato' Johan Raslan's only mistake was to listen to Chin Kwai Fatt, when Johan signed the papers under Chin's instructions that brought him into the fraud involving PricewaterhouseCoopers Consulting Sdn Bhd (464379-U), and the fact remains that Johan knew exactly what he was signing. While Johan Raslan is nowhere as guilty as Chin Kwai Fatt, the fact remains that Johan signed those papers knowing that it was a fraudulent act.

Johan knew that PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) was supposed to be disposed off to IBM Corp in 2002, but he succumbed to the promise of becoming the Chairman of PwC, and knowingly signed on as a part of the plan masterminded by Chin Kwai Fatt, to defraud the creditors of the consulting arm.

We know that Dato' Johan have been busy arranging dinner appointments with the heads of the GLCs and his peers in the Auditing fraternity, to give his version of the events, but the fact remains that as a chartered accountant, there is now way Johan could have signed those papers blindly, and that blot in his otherwise impeccable record is not something that can be removed over a nice meal and a bottle of wine.

The heated arguments Johan has been having with Chin Kwai Fatt and the harsh words they have been hurling at each other will not resolve the fraud. Our inside sources in PwC have told us that Johan is planning to leave for the UK to spend some time with his family in a few weeks, but can Johan leave with things as they are?

The fact that both Johan and Chin Kwai Fatt are on the way out of PwC is a near certainty, only the dates have not been finalised yet.

There is one thing that Dato' Johan Raslan can do before he goes, which will go a long way towards regaining a little of the credibility he has lost. Resign as a Director in PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) immediately, and tell Chin Kwai Fatt to take over the shares.

Dato' Johan Raslan, before you go to the UK to spend time with your family, ensure that the consulting company, PricewaterhouseCoopers Sdn Bhd (464379-U) is closed down, so that the long running fraud can finally be brought to an end. You will also close the one chapter in your career, that taints all your other accomplishments. Do the right thing, and undo what Chin Kwai Fatt convinced you to be a part of all those years ago.

Serious questions for PwC's Sridharan Nair to answer.

Sridharan Nair, there are questions to be answered.

Xinhuanet reports,"HANGZHOU, Feb. 21 (Xinhua) -- Chinese e-commerce giant Alibaba said Monday its chief executive officer and chief operating officer had resigned after a probe found many suppliers had defrauded online customers.

David Wei and Elvis Lee resigned as CEO and COO respectively, accepting responsibility after 1,107 of its suppliers were terminated for using the site to cheat buyers in 2010, the company said in a statement to media organizations.

"Alibaba will definitely not become a money machine, and any behavior that runs against the company's values will not be tolerated," the notice said.

"Integrity is the foundation of values that Alibaba cherishes most, which include the integrity of the staff and a honest and safe online trading platform," said founder and non-executive chairman Jack Ma in a letter to his employees."

Mr Sridharan Nair, over the past few weeks we have seen Ms Loh Lay Choon, Ms Ng Yin Ching and yourself talking about things like branding, and various awards as if there is absolutely nothing wrong with PwC Malaysia!

This just will not wash. If this is a new PR strategy that PwC Malaysia is trying to use to avoid answering the difficult questions raised here and elsewhere, then PwC has seriously underestimated the Malaysian public.

Until Chin Kwai Fatt and the other senior partners answer the allegations against them, no PR strategy PwC tries to use will fool the Malaysian Public!

Does PwC seriously think that as long as some new faces are pushed to the forefront to become the new spokespersons for PwC, about matters which have absolutely nothing to do with the burning questions regarding the fraudulent and corrupt acts of some Senior Partners of the firm, then everyone will just accept that matters have been brought to a close? Seriously?


Lets put it this way so we can bring home the seriousness of the situation to you,Mr Sridharan. In a short matter of time, shareholders of CIMB will be asking very serious questions of CIMB's senior management on why they continue to use the services of PwC Malaysia as their auditors, when PwC has shown absolutely no intention at all of clearing its name of the allegations here, or to bring to book the Senior Partners whose acts are manifestly indefensible. Now, if the Senior Management of CIMB has no choice but to acquiesce to the demands for a change of the external auditors, to avoid litigation, will that then bring home the seriousness of the situation to you Mr Sridharan, as the engagement partner for CIMB?

Please do not insult the intelligence of the Malaysian public by trying to sweep the allegations of fraudulent and corrupt behaviour under the carpet. Not when they can still see that Chin Kwai Fatt and Johan Raslan remain as the MD and Chairman of PwC Malaysia, and that these two characters have made no attempt at all to redeem themselves.

Look at the actions of the CEO and COO of Alibaba, who resign their positions even though there is no direct connections between themselves and the fraud perpetrated by their staff, and compare that with the actions of your own Senior Partners, who cling on to their positions even though they are the very ones who are alleged to have been perpetrating the fraud, and instead are using the junior staff to project a false sense of normalcy to the general public.

Haven't Chin Kwai Fatt & Co caused enough damage yet? How much longer does PwC Malaysia and its staff want to protect them from having to answer the questions, by trying to act as if nothing is wrong?

PwC's Ms. Loh Lay Choon and the NACRA Awards

Chin Kwai Fatt, after having signed a false declaration on your own company's report, on what basis can any employee of PwC Malaysia take part in the National Annual Corporate Report Awards, let alone chair the committee?

For Chin Kwai Fatt, the managing director of PricewaterhouseCoopers, the challenge ahead is to help restore public confidence in corporate reporting.

The collapse of Arthur Andersen, one of the 'Big Five' international accounting firms, as a result of its involvement in the Enron scandal, and subsequent corporate scandals in the United States, have shaken the entire accounting/consultancy profession worldwide. (The Star CEO Outlook 2003)

Obviously Mr Chin Kwai Fatt did not rise to the very challenge he called out to the industry, and in fact has fallen so far short of it that we would not try to mention his name and factual corporate reporting in the same breath, ever again. 

Ms Loh Lay Choon,. while you are there checking through various company reports as the Alternate Chairman to the NACRA organising committee, what about the fraud involving your own company's Senior Staff?

MICPA Council for 2009/2010

"Winning the prestigious NACRA award has increasingly become a target of many organisations, which clearly demonstrates the wide recognition of NACRA as the benchmark for excellence in corporate reporting. The awards aim to promote greater corporate accountability and more effective communication by organisations through the publication of timely, informative, factual and reader-friendly annual reports. This is the very essence of NACRA’s theme – “Towards Accountability and Excellence”. 

In her welcome speech, Ms Loh Lay Choon of the NACRA Organising Committee said that annual reports that provide reliable, adequate and relevant information which strongly reflect an organisation's commitment to efficiently serve the needs of its stakeholders are crucial in ensuring a strong and competitive capital market. In this regard, NACRA recognises Malaysian companies that have taken that initiative to produce exemplary corporate reports, both in content, appearance and design. Such companies deserved to be honoured," she said." (Malaysian Institute of Accountants Press release 28/1/2011)

Ms Loh Lay Choon, how will you judge the following report, that your MD, Mr Chin Kwai Fatt signed in 2008 for PricewaterhouseCoopers Consulting Sdn Bhd (464379-U)?

Chin Kwai Fatt signing off in 2008 for PricewaterhouseCoopers Consulting Sdn Bhd (464379-U), that it can meet its liabilities as and when they may fall due, without disclosing the contingent liabilities, or showing that the firm passes the required solvency tests. In short, Chin Kwai Fatt signing a false declaration.

Ms Loh Lay Choon, if you have been too busy to look at this particular report, you can read the gist of it here, where we also share how Chin Kwai Fatt has also fallen foul of the Malaysian Penal Code.

Tell us, is there any awards that can be presented to Chin Kwai Fatt & Co? Is there one for most fraudulent reporting by an audit firm?

On what basis, Ms Loh Lay Choon, does PwC in Malaysia, or any of its employees and partners think that they are qualified to tell the rest of the country who has done a good job, as far as honesty in Corporate Reporting, Accounting Practices or simple ethical bookkeeping goes? 

It will make more sense for one to get their own house in order first, before deigning to tell others if they are doing a proper job of it.

Institute of Corporate Responsibility, did you attract the right chairman in Johan Raslan?

Chin Kwai Fatt, responsible?

"An advantage of adopting responsible practices within an organisation is the ability to attract and retain the right workforce", said Institute of Corporate Responsibility Malaysia (ICRM) chairman Datuk Johan Raslan.


In this StarBiz article, "Responsible practices can attract right workforce", the Chairman of PwC Malaysia, Dato Johan Raslan, also says "More and more young people are attracted to companies that have good values and do things in a sustainable manner."

Johan Raslan speaking about corporate responsibility on the 23rd of November 2010, with  Ng Yin Ching.

Johan Raslan, tell us how your own company, PwC Malaysia, can attract and retain the right workforce, with all the unanswered allegations on your practices here?

Consider what the young people out there will think, when Chin Kwai Fatt and yourself, as the top two of PwC Malaysia, continue to remain silent, despite this open challenge to deny the allegations or resign.

We challenged you so, "PricewaterhouseCoopers Malaysia employs more than two thousand people, and your continued silence undermines your staff, as they cannot answer on your behalf when asked about fraud and scandal involving their commanders-in-chief. In fact your staff should force you to answer so that they can once again hold their heads up high and walk proud as a part of the PwC family.


You owe answers not only to your firm and your staff, but to your clients, your fellow auditors, your friends and family, the regulators you have compromised, the punter sitting in front of the board praying for a sign to buy or sell, the taxpayers, and the good honest hardworking citizen who has placed his faith in you to safeguard the integrity of a significant part of what makes this country's economy viable."


Would you define taking responsibility as staying in the forefront and answering all questions? Or does the school of thought you subscribe to say that it is okay to pass the buck to someone else?

3 months later, Ng Yin Ching, has to speak to StarBiz about Corporate Responsibility, minus the Chairman. 

"ICR Malaysia is a network of corporate institutions committed to advancing responsible business philosophy and practices that will have positive impact on people, environment and society."~ ICR website

As the Chairman since 2006 for the Institute of Corporate Responsibility, Johan Raslan, how much have you learnt about the true meaning of the word responsibility? 

To what extent will you say that the actions of Chin Kwai Fatt and yourself over the years, have followed all three precepts of People, Profit and the Planet, which you have spoken about?

Or does your take on responsibility mean that you should only care about Profit? While the People and the Planet, the rules of law and profession, legal and ethical behaviour, can be damned?

Bursa Malaysia and the PwC quandary

Can Chin Kwai Fatt affect the KLCI's performance?

Bursa Malaysia, as a front-line regulator is committed to maintaining high standards of corporate governance (CG) so as to maintain market integrity.  Bursa Malaysia is continuously championing initiatives to promulgate the importance of embracing the best practices of CG with their listed issuers. - Bursa Malaysia

Dear Sirs,

We wrote to you on the same matter more than a month ago. And our letter ended with the following para.

Bursa Malaysia, in your own words, you are a front line regulator, committed to maintaining high standards of Corporate Governance, in order to maintain market integrity. Please help save the dignity of CG in this country, as we have further irrefutable proof of fraud by PwC Malaysia, and the longer it takes, the harder it is to hold back. 

Datuk Yusli Mohamed Yusoff, CEO of Bursa

In our previous letter to your good selves, we spoke at length about the miraculous registration of PricewaterhouseCoopers by the AOB, and the fact that PwC is the auditor for more than a hundred public listed companies.

Let us leave the issue of the registration aside, despite it being a physical and legal impossibility.

Let us ignore the fact that Chin Kwai Fatt & Co used the services of a tainted auditor for the firm under their control, PricewaterhouseCoopers Consulting Sdn Bhd (464379-U)

Let us ignore the fact that Chin Kwai Fatt & Co had 'sham directors' appointed to PwC Consulting Sdn Bhd (289801-A).

Let us ignore the fact that Chin Kwai Fatt & Co used fraudulent methods to keep PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) from becoming a part of the worldwide sale of PwC's Consulting arm to IBM Corp in 2002.

Let us ignore every other act that Chin Kwai Fatt has managed to pull of since the fateful day he became the country managing partner for PwC in Malaysia.

Just tell us this.

Can Bursa Malaysia ignore the fact that Chin Kwai Fatt signed a false declaration with regards to the returns for the company known as  PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) in 2008?

Can Bursa ignore the fact that Chin Kwai Fatt has fallen foul of the law under the Malaysian Penal code , with this one single act?

Can Bursa Malaysia keep silent when it knows that Chin Kwai Fatt runs the audit firm that does the audits for 9 of the top 20 companies listed in the Bursa?

Can Bursa Malaysia keep silent, when so many billions of capital has relied on the findings of a man who has shown himself to be manifestly capable of doing whatever he feels as necessary to further his own needs, and not those of his profession?





  

Tun Dr Ling Liong Sik may be innocent after all.

With Chin Kwai Fatt looking into PKFZ, can anyone accept his findings as the absolute truth?

e-invest.com reported that, "the PKFZ audit report said that the project cost has ballooned from RM1.957 billion to a staggering RM12.453 billion since the inception of the free-trade zone in 2001.


According to the report prepared by PriceWaterhouse Coopers (PwC) - which was released today - the astronomical figure includes interest costs.


The original estimated cost for the land purchase and development works in 2001 was RM1.957 billion... (the) project outlay has escalated to RM3.522 billion as at Dec 31, 2008.


Accompanying Lee to the press conference today was auditors PriceWaterhouse Coopers (PwC) managing director Chin Kwai Fatt and PwC partner, Lim San Pin.


The two were there to verify that the publicly released report was not tampered with and released in its entirety.

Chin Kwai Fatt at the release of the PKFZ audit report. 

However, Lee said that PwC normally does not grant permission for their reports to be made public and thus the firm was releasing the report with three conditions:

• That the reader is not authorised to use or rely on the report to arrive at any conclusion.

• PwC has prepared the report for PKA. Their duty of care is only to PKA and PwC does not owe a duty of care to any other party.

• PwC is not obliged to respond to any queries."

So what else is new then. We have seen that PwC does not reply even if you tell them that the roof is on fire.

With an auditor like Chin Kwai Fatt investigating the PKFZ project, how can anyone accept the audit report as being the absolute truth?

We have seen Chin Kwai Fatt rename and sell a company with 'sham directors', just to hide the contingent liabilities in PricewaterhouseCoopers Consulting Sdn Bhd (464379-U).


We have seen Chin Kwai Fatt hire a tainted auditor to audit the books for PricewaterhouseCoopers Consulting Sdn Bhd (464379-U).


We have seen Chin Kwai Fatt sign a false declaration with regards to PricewaterhouseCoopers Consulting Sdn Bhd (464379-U).


We have seen how Chin Kwai Fatt finds it totally acceptable to say that PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) can meet its liabilities as and when they may fall due, when he does not even disclose the several hundred million Ringgit in contingent liabilities it has. He does this even when there is a sworn statement by the Chairman of PwC Malaysia, Dato Johan Raslan, that the Court of Appeal finds the plaintiffs claims against PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) are not manifestly unsustainable, meaning that the chances for these contingent liabilities to fall due are there.

We have seen how Chin Kwai Fatt has done all these and more. And now they want to trust an audit report he has had a major role in to investigate the PKFZ? 

Tun Dr Ling Liong Sik, innocent after all?

As funny as that may seem, it is not a laughing matter. Someone somewhere must have a very sick sense of humour. 

Jail Term - Part 2. Is this the most likely outcome for these two Senior Partners in PwC Malaysia?

PKFZ - Is anyone going to believe the report with Chin Kwai Fatt at the helm?

Chin Kwai Fatt. "Credibility is like virginity. Once you lose it, you can never get it back" ~ Unknown

13th February, 2011 - Sworn documents received from sources show that Chin Kwai Fatt and Khoo Chuan Keat must have known that PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) cannot meet its contingent liabilities as and when they may fall due. As the signatories for PricewaterhouseCoopers Consulting Sdn Bhd (464379-U), claiming that it can meet liabilities as and when they may fall due, they have run foul of the Malaysian Penal Code.

27th January, 2011 - PwC Malaysia media release names PwC partner Sridharan Nair as the man overseeing markets in Malaysia and South East Asia.

22nd January, 2011 - First mention of allegations against PwC by zarinahtakesapaycut appears in the main stream media.

12th January, 2011 - BAT, second major client of PwC to have serious concerns over continued silence of PwC on the allegations.

14th December, 2010 - Genting Group, first major client of PwC to have serious concerns over silence of PwC on the allegations.

29th November, 2010 - Last media release by PwC Malaysia until end January 2011. Departing from their average of  four releases/mentions a month.

Mid 2010 - MICPA appoints Dato Johan Raslan, Chairman of PwC Malaysia as its President.

13th April, 2010 - Second Finance Minister signs law into effect that allows AOB to collect the fees for the registration of Auditors.

1st April, 2010 - AOB is launched, and immediately registers PwC as a registered Auditor of Public Interest Entities, an act that is a legal and physical impossibility.

1st April, 2010 - Chin Kwai Fatt sees that PwC's Director gets appointed as the Director of the Audit Oversight Board under the Securities Commission. An act that means that world class auditor regulatory bodies such as the PCAOB of the USA, under which PwC Malaysia is registered, cannot accept the findings of the Malaysian AOB, under their rules.

First Quarter 2010 - Khoo Chuan Keat signs a false declaration that PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) can meet its liabilities as and when they may fall due, without disclosing contingent liabilities, or showing that it meets the required solvency tests. An offence under the Malaysian Penal Code.

Khoo Chuan Keat. 

20th February, 2009 - Chin Kwai Fatt signs a false declaration that PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) can meet its liabilities as and when they may fall due, without disclosing contingent liabilities, or showing that it meets the required solvency tests. An offence under the Malaysian Penal Code.

27th October, 2003 and 29th October, 2002 - PwC Consulting Sdn Bhd (289801-A) appoints 'sham directors' who have nothing to do with PwC Malaysia's consulting business, as part of the sale to IBM Corporation worldwide.  PricewaterhouseCoopers Consulting Sdn Bhd (464379-U), the real consulting arm of PwC Malaysia remains under Chin Kwai Fatt, Johan Raslan, Lee Tuck Heng and Khoo Chuan Keat, hiding several hundred million Ringgit in contingent liabilities.

20th November, 2001 - PricewaterhouseCoopers Consulting (East Asia) Sdn Bhd is renamed as PwC Consulting Sdn Bhd (298801-A) to become a substitute for the real consulting arm of PwC Malaysia, PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) in the sale to IBM Corporation worldwide.

2002 - IBM Corporation announce acquisition of  PricewaterhouseCoopers Consulting business worldwide for US$3.5 Billion. So begins the long running fraud perpetrated by Chin Kwai Fatt and Co to keep PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) under wraps so that the hundreds of millions of Ringgit in contingent liabilities can remain hidden.

2000 - Chin Kwai Fatt becomes the Managing Director of PricewaterhouseCoopers Malaysia, beating the favourite to the position.

Jail Term - Part 1. Is this the most likely outcome for these two Senior Partners in PwC Malaysia?

We have received from our sources in PwC, a sworn statement by the Chairman of PricewaterhouseCoopers Malaysia, Datuk Johan Raslan, that states that the Court of Appeal finds the claims made against PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) could not be said to be manifestly unsustainable.

The Malaysian Penal Code Sections 197, 199, 200 view the signing of a false declaration as a punishable offence equal to one of giving false evidence.

When IBM Corp made the global acquisition of PwC Consulting, the consulting arm of PricewaterhouseCoopers worldwide in 2002, the Malaysian consulting arm of PwC, PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) was not the company that was disposed to IBM. This was done to hide the several hundred million Ringgit in contingent liabilities that have been kept hidden in PricewaterhouseCoopers Consulting Sdn Bhd (464379-U),


Instead, a company called PricewaterhouseCoopers Consulting (East Asia) Sdn Bhd was renamed as PwC Consulting Sdn Bhd (289801-A) and disposed of to IBM Corp.

We have received a copy of a sworn statement by Raja Tan Sri Dato' Seri Arshad, the former Chairman of PwC, in which it is attested that PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) is a member firm of the global organisation of PricewaterhouseCoopers. This makes the sale of PwC Consulting Sdn Bhd (289801-A) a fraudulent sale.

The renamed PwC Consulting Sdn Bhd (289801-A) was disposed of to IBM Corp instead of  PricewaterhouseCoopers Consulting Sdn Bhd (464379-U)

Chin Kwai Fatt signed in 2008 that the firm of PricewaterhouseCoopers Consulting Sdn Bhd (464379-U), at the date of the signing is able to meet its liabilities as and when they fall due. 


There was no disclosure made in the submissions signed by Chin Kwai Fatt of the several hundred million Ringgit in contingent liabilities that PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) has. 


In the sworn statement by Dato Johan Raslan, the current Chairman of PwC in Malaysia, that we received from our sources, it is stated that the Court of Appeal finds that the claims made against PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) could not be said to be manifestly unsustainable. 


Chin Kwai Fatt, the MD of PwC Malaysia, as the signatory knew of this from day 1, yet not only did he sign the declaration, he also did not ensure that the contingent liabilities were disclosed as required.


The only argument that may be used is that the suits against PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) by various parties, are frivolous and vexatious. But even that window is closed by the admission of Johan Raslan that the plaintiffs claims are not manifestly unsustainable!

This makes the signing by Chin Kwai Fatt a false declaration, which is an offence under the Malaysian Penal Code!

On what basis did Chin Kwai Fatt sign the certificates without disclosing the contingent liabilities, and making the statement that they are able to meet liabilities as and when they fall due?!


The failure of  PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) to furnish a duly signed certificate relating to exempt private company in the submissions for 2009 is by itself a violation of the law.

But the Senior Partner of PwC, Khoo Chuan Keat, who signs as the Company Secretary in 2009 also did not ensure that the contingent liabilities were disclosed. Just like Chin Kwai Fatt the year before, Khoo Chuan Keat has also signed that  PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) is able to meet its liabilities as and when they fall due. 

Chin Kwai Fatt has signed a false declaration in 2008, an offence under the Malaysian Penal Code.

Khoo Chuan Keat has signed a false declaration in 2009, an offence under the Malaysian Penal Code.

And with PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) declared as having ceased operations in 2009, there is no way for it meet its cash flow solvency against several hundred million in contingent liabilities, and neither is  PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) able to meet its balance sheet solvency test, both of which tests were not met in both 2008 and 2009!

Jail Term - Is this the most likely outcome for these two Senior Partners in PwC Malaysia?

Stay tuned for our most explosive revelations to date.


These two Senior Partners of PwC Malaysia will be having sleepless nights in the weeks to come.