Say No To Hudud

Monday, March 21, 2011

PwC's Paul Boorman and TEPCO : The Link

TEPCO (Tokyo Electric Power Company) not reporting issues at plants seems to be a common trend at the company. In 2002, the president and 4 executives resigned, after it was discovered that repair and inspection records were falsified. What was covered up? Cracking in a key component within the reactor vessel of all their reactors, leading to the shutdown of all 17 of their reactors. And again cover-ups in 2007, when TEPCO reported a only a small fire and 1 gallon of water, when actually the fire lasted for 2 hours and 100′s of gallons of radioactive water leaked into the sea. And which nuclear plant has reported to have the most issues? The Fukushima Diachi plant, the nuclear plant facing issues now.

TEPCO is a prime example of a company that has placed profits above corporate values. And what links TEPCO to PwC is this unconscionable ability to always look at the bottom line first, above all else.

In TEPCO's case, its regulator is the Japanese Government, which has also been found wanting in the way they have allowed TEPCO, a private company to decide the response to the nuclear catastrophe. While the people of Japan are winning admiration around the world for the way they are facing up to this crisis, their government has shown signs that it does not deserve the same admiration.

TEPCO “hesitated because it tried to protect its assets,” Akira Omoto, a former TEPCO executive and member of the Japan Atomic Energy Commission, told the financial newspaper. A government official stated: “This disaster is 60 percent man-made. They failed in their initial response. It’s like TEPCO dropped and lost a 100 yen coin while trying to pick up a 10 yen coin.”

In PwC's case, Mr Paul Boorman, who is the Global Leader for Operations in PwC, is allowing the crisis in PwC Malaysia due to the ongoing fraud perpetrated by the country managing partner, the MD, Chin Kwai Fatt, to continue without a single peep of protest.

Mr Paul Boorman, Global Leader for Operations in PwC, is very quiet when it comes to the ongoing fraud by PwC Malaysia.
Just as the Japanese Government has shown its willingness to risk its peoples lives just so that TEPCO can protect its investments, Paul Boorman is allowing the values that are enshrined in the PwC Global Code of Conduct to be sacrificed so that PwC Malaysia can continue churning a profit.

Here, we asked that, "efforts be taken by the global office to dissolve PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) by the end of February 2011, as there is no rational explanation for its continued existence except to defraud creditors by hiding its contingent liabilities. This is inexcusable for any entity, and doubly so for an auditing firm of PwC's repute."

It is now approaching the end of March, and till now PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) has been allowed by Paul Boorman and the other Global Leaders to remain as it was before, defrauding its creditors, and hiding hundreds of millions in contingent liabilities.

If the fact that companies like TEPCO and PwC Malaysia can find it in themselves to place profits above values is worrying, the ability of those responsible for oversight of this recalcitrant corporations to sit by and do nothing even when they become aware of the fraud is truly sickening. It becomes an indication that the 'rot' may have set in too deep into the system, that to even find those 'few good men' who still have some sense of responsibility in organizations and systems like these, is an impossible task.

While the damage caused by TEPCO's actions is now clear for all to see and act against, we wonder what further damage PwC Malaysia under Chin Kwai Fatt will have to cause before action is taken against those that deserve it.

Chin Kwai Fatt, MD of PwC Malaysia. Till today he has not denied the fraud involving PricewaterhouseCoopers Consulting Sdn Bhd (464379-U)
and the bogus firm and directors of PwC Consulting Sdn Bhd (289801-A), or been made to answer them. 

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