Say No To Hudud

Friday, April 29, 2011

Chin Kwai Fatt has put the MOF in a tight spot!

Pertikaian pendaftaran syarikat PricewaterhouseCoopers (PwC)

Dr. S. Ramakrishnan minta MENTERI KEWANGAN menyatakan:

(a)          bagaimana syarikat PricewaterhouseCoopers (PwC) dan salah seorang ahli lembaga pengarah didaftarkan pada tarikh yang sama iaitu 1 April 2010 oleh Lembaga Pemantauan Audit (AOB) di bawah seksyen 31s (1) Akta Suruhanjaya Sekuriti, sedangkan kebanyakan ahli lembaga pengarah dilantik pada tarikh selepas 1 April 2010; dan

(b)          siapa yang menandatangani surat pendaftaran untuk syarikat PwC dan ahli lembaga pengarah berkenaan? Adakah pengerusi Suruhanjaya Sekuriti atau Pengarah Lembaga Pemantauan Audit (AOB)? Mekanisma apa yang digunakan untuk menerima dan memproses permohonan berkenaan apabila Pengerusi Suruhanjaya Sekuriti hanya menandatangani pindaan tersebut pada 8 April 2010, dan Menteri Kewangan 2 pada 13 April 2010


Tuan Yang di-Pertua,

(a)          Untuk makluman Ahli Yang Berhormat, dengan penubuhan AOB berkuat kuasa pada 1 April 2010, kesemua syarikat tersenarai mesti melantik juruaudit yang berdaftar dengan AOB. Kuasa AOB untuk menolak permohonan pendaftaran dari firma audit atau juruaudit diperuntukkan di bawah Seksyen 31P Akta Suruhanjaya Sekuriti 1993 (SCA) manakala Seksyen 31s memberi kuasa kepada AOB untuk menetapkan tempoh pendaftarannya. Bagi kes PricewaterhouseCoopers (PwC), AOB meluluskan permohonan firma tersebut beserta seorang rakan kongsinya pada 1 April 2010 setelah mengambil langkah proaktif bagi memudahkan proses pendaftaran dan berpuas hati mereka mematuhi kehendak pendaftaran selaras dengan Seksyen 31P SCA. Tindakan ini dilaksanakan bagi mengelakkan syarikat-syarikat tersenarai menghadapi masalah melantik juruaudit syarikat yang lazimnya dilaksanakan pada suku kedua serta mengelak syarikat-syarikat tersebut daripada menanggung kos yang tidak perlu.

Sebelum kelulusan pendaftaran diberi, firma audit dan juruaudit dikehendaki menghantar permohonan bertulis kepada AOB berserta fi pendaftaran. Setiap permohonan akan diteliti berdasarkan kehendak Seksyen 31P SCA bagi memastikan, antara lain, firma audit atau juruaudit berkenaan tidak pernah disabitkan kesalahan yang melibatkan kes penipuan atau penyelewengan, gagal mematuhi piawaian pengauditan dan tidak muflis. Walaupun peraturan mengenai yuran AOB hanya berkuat kuasa pada 15 April 2010, namun begitu, pihak AOB telah mengguna pakai surat aku janji dari firma audit bagi urusan bayaran fi pendaftaran bagi mengelakkan syarikat-syarikat tersenarai menghadapi masalah melantik juruaudit sementara menunggu peraturan tersebut berkuat kuasa. Kelewatan menguatkuasakan peraturan ini adalah untuk memastikan peraturan yang dibuat dengan teratur dan sempurna.

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Chin Kwai Fatt of PwC Malaysia has not reported this blog to the police or the MCMC yet. And he could turn out to be a big liability for the government with GE13 approaching. 

Wednesday, April 27, 2011

Why PwC Malaysia cannot ratify or back PEMANDU's Corporate Integrity Pledge - Part 2

When companies voluntarily sign the pledge, the companies will be part of a greater initiative to create a business environment in Malaysia that controls corruption through promoting values of transparency, accountability and good governance and strengthening internal systems that support corruption prevention.  

The programme will see companies gradually moving towards self-assessment, identifying gaps and action plans to close them and eventually reporting on anti-corruption measures, in line with the UN Reporting Guidance on the 10th Principle under the Global Compact. ~ PEMANDU Press Release
Mr Prakash Chandran, President and CEO of Siemens Malaysia, has ratified PEMANDU's Corporate Integrity Pledge
According to PEMANDU, by voluntarily signing to uphold the Principles in the pledge, companies are committing to a longer term programme to increase integrity in the Malaysian corporate sector through good governance, accountability and transparency among others.

The Pledge is backed by KPMG, whose Managing Partner, Mohamad Raslan said this to the media; "The 2009 KPMG Fraud Survey revealed that fraud continues to be a serious threat within corporate Malaysia, with 49% of companies surveyed experiencing at least one incident of fraud."

So why can't PwC Malaysia, the largest audit firm in the country, back the Corporate Integrity Pledge, and show some support to PEMANDU, who are their clients? The answer is simple. If we look at the words highlighted in red in the two preceding paras, it becomes apparent that while PwC Malaysia can claim a very close acquaintance to the word fraud, they will have a bit of a problem convincing us that they understand the meanings of the words integrity, good governance, accountability and transparency.

PEMANDU now has to ask itself how seriously the corporate sector in Malaysia will take the Corporate Integrity Pledge, when PEMANDU itself gives consulting jobs to PwC Malaysia and has even appointed PwC Malaysia to help set up an assurance framework to annually assess the quality of sources, processes and information for its annual reports?

On the one hand, the Malaysian Public and the Corporate Sector are expected to accept that PwC Malaysia can get away with not answering the allegations of fraud against its Managing Partner, Chin Kwai Fatt and his fellow senior partners, while on the other hand also swallow the fact that PwC Malaysia plays the crucial role as the independent third party which will assist PEMANDU in convincing the Malaysian Public and corporate sector that the measures taken by PEMANDU are working?

Chin Kwai  Fatt, Managing Partner of PwC Malaysia. He has not reported this blog to the MCMC or the Police yet. Neither has he denied or replied to the allegations of fraud against him.

We will leave you with a couple of quotes from Mr Prakash Chandran and KPMG's Mohamad Raslan, which gives some hope, even though PEMANDU has not learned that it is a bad idea to appoint PwC Malaysia for any jobs involving reform and economic transformation, until the fraud allegations against them are addressed, as that is like the fox guarding the chicken coop, or to set the wolf to guard the sheep.

Prakash Chandran : In business, the decisions of a few to act unethically and illegally can destroy the lives of thousands of honest, hardworking employees.

Mohamad Raslan: The pledge sets the right tone at the top for ethical behaviour and serves to instill the right corporate culture.

Why PwC Malaysia cannot ratify PEMANDU's Corporate Integrity Pledge

PRIVATE firms have been recognised by Pemandu for their support of the Corporate Integrity Pledge. The pledge has been ratified by Top Glove Corp BhdSiemens Malaysia Sdn Bhd and backed by KPMG.The Star

Tan Sri Dato' Azman bin Hj Mokhtar is the Managing Director of Khazanah  Nasional, and also sits on the board of trustees for PEMANDU 

Khazanah Nasional Plans To Sell Pantai Medivest And Pantai Fomema
Khazanah Nasional Berhad is planning to Pantai Medivest Sdn. Bhd. and Pantai Fomema & Systems Sdn Bhd, valued at around MYR 150 million, to focus on its core healthcare services business. Khazanah is believed to have appointed PricewaterhouseCoopers to manage the sale of Pantai Medivest and Pantai Fomema. "We are in the process of disposing it. We are in talks with a few parties," said a Khazanah spokesperson. He declined to name the interested parties. ~ Businessweek
Tan Sri Azman, as the Managing Director of Khazanah Nasional Berhad, we must first of all congratulate you and your team for generating a total return of 39.4% for 2010, and outperforming even the KLCI.
But we have a simple request at this juncture. Seeing that PricewaterhouseCoopers has a habit of being appointed by both PEMANDU and Khazanah Nasional, two important bodies in which you hold very important positions, can we request that you inquire of Mr Chin Kwai Fatt, The MD of PricewaterhouseCoopers Malaysia, why he cannot get his firm, to ratify the Corporate Integrity Pledge released by PEMANDU?
We are rather perplexed that PricewaterhouseCoopers is not backing this pledge, especially considering that they do numerous audit related and non audit related jobs for PEMANDU, the GLC's and a number major corporations, many of which Khazanah Nasional is a shareholder in.
And considering that Khazanah Nasional has recently appointed PwC Malaysia to manage the sale of Pantai Medivest and Pantai Fomema, it would look rather odd that the largest audit firm in the country is not a party to something as crucial to the fight against fraud and corruption as the Corporate Integrity Pledge.
Chin Kwai Fatt, the MD of PwC Malaysia. Has not signed any report against this blog with the MCMC or the Malaysian Police. Has also not backed the Corporate Integrity Pledge by PEMANDU.
Another factor that makes us wonder why Chin Kwai Fatt and PwC have not backed the Corporate Integrity Pledge is because we know that Mr Chin Kwai Fatt had absolutely no problem at all in signing a false declaration in 2008. That being the case, what is stopping him and his firm in backing this pledge?
If the worry is that a firm like PwC Malaysia, which has so many allegations of fraud hanging over the heads of some of its senior partners like Chin Kwai Fatt, will look hypocritical if it signs a pledge as clear on its stance against fraud and graft as the Corporate Integrity Pledge, then we must ask why they are still being appointed to jobs which we hope do require a great measure of integrity and high ethical standards?
Tan Sri Azman Mokhtar, please understand our concern as there is only one Khazanah Nasional and one PEMANDU, but there are numerous alternatives out there to PwC Malaysia, which do not come with the taint of fraud and other low things.


Tuesday, April 26, 2011

Dato Seri Najib, can corruption be eliminated without dealing with fraud?

PEKAN: Corruption and leakages are not only affecting the government's revenue but also the nation's economic performance, said Prime Minister Datuk Seri Najib Tun Razak.
He said the government had to take drastic measures to curb these scourges to safeguard the nation's economy and that the recent arrests of people suspected to be involved in corruption were examples of the action taken. ~ PM: Corruption, leakages affecting nation's economic performance
"Fraud vs Corruption
In beginning a discussion about corruption it is important to start with some theory about fraud.  This is because fraud and corruption are linked.  However they are not the same, rather they are like two concentric circles that overlap in some areas but are separate in others. 
You can have fraud and no corruption.  You can have corruption and no fraud.  But where there is fraud there is often corruption. ~Alex Duperouzel
Dato' Seri Najib is charting us towards becoming a nation where corruption will hopefully be but a memory. But can the PM accomplish this momentous task if we allow fraud practices to remain unchecked?
PricewaterhouseCoopers Malaysia is the largest audit firm in the country. It would be reasonable to expect that they will not allow any questions regarding their business practices, especially if the questions cast the doubt that there is ongoing fraud being perpetrated by the firm's senior partners, to remain unanswered. But that is what they are doing. Despite the unceasing questions raised here and elsewhere, they choose to remain silent over the allegations of fraud. 
If the allegations of fraud remain unanswered because PwC Malaysia know that the allegations are true, ergo, there are no reasonable explanations they can give to remove the stain of fraud from affecting them, then we have to ask if the possibility that the largest audit firm in the country can also be tainted by corruption is there.
Chin Kwai Fatt and the audit firm he runs have not answered the allegations of fraud against him, or made a report to the MCMC or the Police on this blog.
"A major risk for multinationals operating in Asia is to place the same amount of reliance on the external audit function in this region that they place on it in their home jurisdiction when it comes to the external audit being an important part of the overall control environment.  The fact is that the major audit firms do not have consistent standards across their vast networks, nor do they have consistent training and they do not do enough to educate those running the head office audit about these risks." ~ ibid

So, if as a nation we allow the largest audit firm in the country, PricewaterhouseCoopers Malaysia, to escape from answering to allegations of fraud, what does that mean in the fight against corruption? Do we consider bribery as the only form of corruption worthy of being addressed?
Among the factors that allow corruption to flourish are lack of transparency (how did PwC get registered by the AOB without the fraud becoming apparent?) and silence (not only the silence by PwC, but also by the various watchdogs like the MSWG etc).
Bottom line is that the country will not be able to fully address corruption, if the corporations and other public interest entities know that they can get away with fraud, just like PwC Malaysia is doing. 
Who better to learn from, than the largest audit firm in the country, and its MD, Chin Kwai Fatt, on how to get away with fraud. 

Monday, April 25, 2011

ICAEW ~ How do you choose your authorised training employers?

To train ACA students, your organisation needs to become an ICAEW authorised training employer (ATE). Becoming an ATE is a free and straightforward process. You’ll need to make sure your organisation can meet our training standards.

Among the requirements that need to be fulfilled for any firm to qualify as an ICAEW authorised training employer is the appointment of a QPRT, that is the Qualified Person Responsible for Training. One of the duties of the QPRT is the training in ethics.

Structured training in ethics

  • Provide structured training in professional ethics within the organisation.
  • Promote an ethical environment and the discussion of ethical issues within the organisation.

What are the checks and balances in place to ensure that not only is the QPRT qualified to impart ethical values to the students, but that the firm itself has an ethical culture which is worthy of emulation?

"And yet two years after passage of Sarbanes, companies are still struggling to come to grips with defining the characteristics of an ethical culture that will truly reduce the risk of fraud and scandal.
Why is it so hard?

An insight is offered from a recent speech by Lori A. Richards, the SEC's Director of the Office of Compliance Inspections and Examinations. Ms. Richards said "[i]t's not enough to have policies. It's not enough to have procedures. It's not enough to have good intentions. All of these can help. But to be successful, compliance must be an embedded part of your firm's culture."~David Gebler

Is Chin Kwai Fatt the fount of ethics in PwC Malaysia. We think not. And why hasn't he reported this blog to the MCMC or the Malaysian Police yet?
Taking PwC Malaysia as an example. Its Chairman, Datuk Seri Johan Raslan, is a member of the Securities Commission of Malaysia's Corporate Governance Consultative Committee. The Securities Commission charged the engagement partner of Roger Yue, Tan & Associates for abetting a listed company in submitting false information (inflated earnings) to Bursa Malaysia. Johan Raslan's role in the Securities Commission means that there is no way for this charge to escape his notice.

So, why does Datuk Seri Johan Raslan, as the main shareholder and a director of PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) still use the firm of Roger Yue, Tan & Associates as the auditor? 

The PwC has a global Code of Conduct which is meant to be used as the guideline for the PwC firms and staff worldwide. We will put one of the questions we have asked before, for which, just like everything else that has been asked, there have been no answers from PwC or its representatives. 

When faced with difficult issues or issues that place PwC at risk, we consult appropriate PwC
individuals before taking action. We follow our applicable technical and administrative consultation requirements.
Q4: Is that how the 4 senior partners under the leadership of Mr Chin Kwai Fatt came to the decision to continue using a tainted auditor to audit the books ofPricewaterhouseCoopers Consulting Sdn Bhd (464379-U)? You consulted each other as being the appropriate PwC individuals in this case?
Summary of ethics questions to consider
1. Is it against PwC or professional standards?
2. Does it feel right?
3. Is it legal?
4. Will it reflect negatively on you or PwC?
5. Who else could be affected by this (others in
PwC, clients, you, etc.)?
6. Would you be embarrassed if others knew you
took this course of action?
7. Is there an alternative action that does not pose
an ethical conflict?
8. How would it look in the newspapers?
9. What would a reasonable person think?
10. Can you sleep at night?
If there is sufficient room for doubt whether PwC Malaysia even follows its organisations own Global Code of Conduct, shouldn't the ICAEW then have a look at whether they have enough checks and balances, which go beyond the mere filling up of forms, to ensure that its future members have truly been 'schooled' in ethics?

Thursday, April 21, 2011

Serious questions for Mr John Weatherill, Professional Standards Committee ICAEW, to answer.

When young aspiring accountants in Malaysia, decide to study for the ACA under PricewaterhouseCoopers, so that they may one day become members of the Institute of Chartered Accountants in England and Wales, ICAEW, what exactly are the values they acquire under the training programme?

Mr John Weatherill is the Head of Assessment and Conciliation, Professional Standards for the ICAEW. Perhaps it is time to remind the ICAEW of what exactly is considered as acceptable, in PwC Malaysia's reckoning, as far as ethics are concerned.

The MD of PwC Malaysia, Chin Kwai Fatt, who is yet to lodge a report with the MCMC or the Malaysian Police on this blog.
The following are among the examples of 'proper behaviour' that the future members of the ICAEW, who are under training with PricewaterhouseCoopers Malaysia, will be absorbing in the mandatory 450 days of chargeable work that they must complete, before they can be accepted. And there is no better candidate whose actions we can pick as examples than that of the MD himself, Mr Chin Kwai Fatt.

1. If you find that the Chairman of the firm had signed a sworn statement, as Raja Tan Sri Dato' Seri Arshad had done in 2001, that a company called PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) is a member firm of the global organisation of PricewaterhouseCoopers; just ignore that sworn statement when you are supposed to sell the consulting company to IBM Corp as part of a worldwide sale a year later.

2. What you must do instead, is this. Rename a company, as PricewaterhouseCoopers Consulting (East Asia) Sdn Bhd  was renamed to PwC Consulting Sdn Bhd (289801-A), and transfer all assets and ongoing business from PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) into that new company. Now, in order to ensure that you can defraud the creditors of PricewaterhouseCoopers Consulting Sdn Bhd (464379-U), you must make sure that the contingent liabilities are not transferred to the company that you have renamed.

3. After that, you must find a couple of people that you can name as Directors for the newly named company, before you can sell it to IBM, just like Ms Chu Kum Yoon, a company secretary, and Mr Foong Weng Chee, who has his own accounting firm, were named as the Directors for PwC Consulting Sdn Bhd(289801-A). Never mind that the two people that you picked have never been involved in the consulting business of PwC Malaysia in any way at all.

4. Remember that there is a clause in the no-action letter to the sale of the consulting business to IBM Corp issued by the SEC (US Securities and Exchange Commission) which states : "9) indemnification claims for certain losses must be made by IBM within two years of the closing and the aggregate amount of such claims may not exceed 12.5% of the purchase price;". Now, you do not want the several hundred million Ringgit in contingent liabilities arising from several lawsuits against PrciewaterhouseCoopers Consulting Sdn Bhd (464379-U) to become a part of that sale to IBM Corp worth USD$3.5 Billion, do you? Never mind that the creditors are defrauded from getting their just settlements, just make sure you keep those contingent liabilities in PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) as far away from the sale to IBM Corp as possible.

5. Now, you must find a suitable auditor to audit the books for PricewaterhouseCoopers Consulting Sdn Bhd (464379-U), don't you? So pick a firm like Roger Yue, Tan & Associates. Never mind that one day their engagement partner will be charged by the Securities Commission for abetting a listed company in submitting inflated earnings to Bursa Malaysia, or how it would look when the largest audit firm in the country, like PwC, itself uses the services of a tainted auditor, just make sure you find the 'right auditor', okay?

6. Now, you need to keep those pesky contingent liabilities hidden don't you? So what you have to do is this. Just go ahead and sign in the annual returns for PricewaterhouseCoopers Consulting Sdn Bhd (464379-U), that the company can meet its liabilities as and when they may fall due. This is what your MD did in 2008 did he not. But ensure that sure you make no mention at all of the several hundred million in contingent liabilities the company has, alright.

7. Now, even if there is another sworn statement, this time from the current Chairman of PwC, Datuk Seri 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, keep those contingent liabilities undeclared in the annual returns. Don't worry that you are signing a false declaration when you sign that the company can meet its liabilities as and when they may fall due, even though you did not ensure that the company can meet its cash flow solvency and balance sheet solvency tests. You know for a fact that there is no way PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) can meet those two tests in the face of hundreds of millions of Ringgit of liabilities falling due, so why bother right.

8. Now you must ask yourself if you have done enough for the creditors of PricewaterhouseCoopers Consulting Sdn Bhd (464379-U). When the answer hits you as 'not nearly enough', do this. Get PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) to be declared as having ceased operations in 2009. This way, you have ensured that it can never meet the cash flow solvency tests, and when you get a fellow director, like Khoo Chuan Keat to sign the annual returns for 2009 that the company can meet its liabilities as and when they may fall due, without disclosing the contingent liabilities, and doing the necessary solvency tests, you can finally rest easy that you have done everything possible for the creditors of PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) over the years, that is, leave them as high and dry as possible, even if it means breaking a few laws and regulations along the way. 

 9. Don't get caught!!! But if you do, keep very very quiet. Don't reply to the allegations against you, and never, ever make a report to the police or the MCMC against any blog, such as this one, that exposes you for what you are. 

Remember, fraud, just like any other skill, takes practice. 

Tuesday, April 19, 2011

Corporate Malaysia Says No To Corruption....But 'Daylight' Fraud is OK.

Datuk Seri Najib Tun Razak today commended business owners of Entry Point Projects (EPP) under the Economic Transformation Programme (ETP) for taking a firm anti-corruption stand.
"It is truly a momentous occasion for the corporate figures in Malaysia as they come together to fight corruption and help Malaysia strengthen its economy as we head towards Vision 2020," he said at the Fifth Progress Update of the ETP at the Putrajaya International Convention Centre here today.

Present were International Trade and Industry Minister Datuk Seri Mustapa Mohamad and Performance Management and Delivery Unit (Pemandu) chief executive officer Datuk Seri Idris Jala.
Sixteen EPP business communities came forward to express their commitment for transparency, accountability and good governance. ~ Corporate Malaysia Says No To Corruption

The World Bank  has identified corruption as among the greatest obstacles to economic and social development. It undermines development by distorting the rule of law and weakening the institutional foundation on which economic growth depends.

This declaration by the business owners of the EPP's is commendable, but is not enough to help the nation achieve Vision 2020. If we look at the stance of the World Bank in fighting poverty and achieving growth, it says, "Corruption sabotages policies and programs that aim to reduce poverty, so attacking fraud and corruption vigorously is critical to the achievement of our overarching mission to reduce poverty."
Eliminating corruption and the culture of bribery alone will not fast track Malaysia into the developed nation status that we desire. Fraud must be eliminated as well, and the need to take an anti-fraud stance is as important as saying no to corruption.

Datuk Seri Najib, by eliminating Corruption, but allowing Fraud to flourish, will not see us achieve Vision 2020.
Corruption is defined as (in business and government):
1. Dishonest or fraudulent conduct by those in power, typically involving bribery
2. The action of making someone or something morally depraved or the state of being so

Fraud is defined as:
1. Wrongful or criminal deception intended to result in financial or personal gain
2. A person or thing intended to deceive others, typically by unjustifiably claiming or being credited with accomplishments or qualities 
At least two parties are required before corruption can be committed, but fraud can be committed by a single entity, be it an individual or a company, and the victims of fraud are all those that have been deceived by the act of fraud.

Taking a strong stand against corruption does not mean that business owners will also be free from the temptation to commit fraud, as the two diseases are dissimilar.

That raises the question, of how effective the elimination of corruption will be in spurring us towards developed nation status, if in turn we also become a nation of fraudsters?

The question is simple, why are Chin Kwai Fatt and PwC Malaysia still doing important jobs for PEMANDU, the GLC's and development plans like the Bintulu Port, when they have not been made to answer the fraud allegations against them?

Should we add the following qualifier to the stance under the ETP?

Say No To Corruption, But Fraud Is Okay.

Chin Kwai Fatt, yet to do one of two things. Answer the allegations of fraud against him, or report this blog to the MCMC.

Monday, April 18, 2011

ICAEW gets tough and begins investigation on PwC Malaysia.

How quickly things can change. Less than a year ago, a young man by the name of An Li Fong, an associate with PwC Malaysia, attained the highest score in the audit and assurance paper of the ICAEW Associate Chartered Accountant (ACA) examinations, ahead of 1600 other candidates worldwide. And now, the ICAEW  finds itself having to take a close look at An Li Fong's bosses, Chin Kwai Fatt & Co, to see whether they deserve sanctions. 

Datuk Seri Ahmad Johan Raslan, the Executive Chairman of PwC Malaysia, and member of the ICAEW.
The recent posting titled, PwC Malaysia is a disgrace to the ICAEW (The Institute of Chartered Accountants in England and Wales), has caused the influential institute to have a closer look at the deeds of Chin Kwai Fatt and Datuk Seri Johan Raslan of PwC Malaysia.

As received from Ms Maria Fuller, Complaints Case Worker, Professional Standards, ICAEW
Whether Ms Maria Fuller, the complaints case worker with the ICAEW finds any grounds for concern, is not the issue that keeps us awake at nights. What gets our goat is the fact that Mr Chin Kwai Fatt, the Managing Director of PricewaterhouseCoopers Malaysia, has not found the time to lodge a simple report against this blog, either with the MCMC or the Malaysian Police, for any reason whatsoever that catches his fancy.

Why does Chin Kwai Fatt rather have the Professional Standards Committee of the ICAEW look at his many  colourful deeds, when he could instead have the MCMC looking at us? Why not get the authorities to shut the blog down, so that he can go about his schemes unmolested?

Dear Mr Managing Director of PwC Malaysia, Chin Kwai Fatt, do you not wish that this blog was no more? Why then do you refuse to report it to the authorities? 
We have no choice but to continue with our current course of action. And that means that we will continue highlighting the many fraudulent acts that have been committed, and are still being committed by Chin Kwai Fatt and his cohorts.

As Confucious said, " It does not matter how slowly you go so long as you do not stop."

Could Barisan Nasional lose the 13th GE on the back of weak Corporate Governance.

Just because Chin Kwai Fatt and Johan Raslan can 'gao tim' the Regulators, does not mean that they can 'gao tim' the Voters.

Dato' Seri Najib, why are Chin Kwai Fatt and Johan Raslan still getting deals from the GLC's when they have refused to answer the allegations of fraud against them?
In the recent Sarawak State Elections, it has become evident that not all voters can be swayed to vote for the BN, when they are unhappy with the way things are run. And when you consider the Chinese voters, nothing can  upset them more than when there are questions left unresolved in matters involving business and enterprise.

Malaysia's governing coalition won a key election in the Borneo state of Sarawak over the weekend, but it lost most of the ethnic Chinese vote. ~

The voters want a sense of fairness in Corporate Governance. This makes the field more transparent and allows better decisions when it comes to picking which horse to back. But when there is a sense that crooks are being allowed into important roles involving the large GLC's and Public Listed Companies, the voters who have billions riding on these institutions will get upset, and with reason as well.

Although Chin Kwai Fatt has not answered the fraud allegations, he is going around as if nothing is wrong.
Chin Kwai Fatt has shown that the 'right connections' allows him to get away with actions as serious as risking jail term by signing false declarations! He has been getting away with fraud for nearly a decade now, and the fact that he runs the largest auditing firm in the country, with impunity, makes us voters feel that even the 'private sector' has been compromised by values that are detrimental to good business.

“We have to stop the trend and resolve Chinese issues. The message is clear in urban constituencies – that voters are not giving their support,” he said, adding that SUPP first received that message when it lost six seats in the 2006 state election.~MCA's Datuk Seri Liow Tiong Lai

And Johan Raslan is an example of why voters are getting more and more upset with the Malay 'elite'. His position allows him the freedom to be free from any accountability at all. So we have to ask why there are separate rules for people like Chin Kwai Fatt and Johan Raslan, when the rest of us are punished for the slightest transgressions?

The Sime Darby debacle is a good example of how crooks like Johan Raslan and Chin Kwai Fatt are allowed to add risk to the positions we voters take in the development and growth of the country. Remember the fall in the share price in May 2010, after the losses in the Energy division came to light, that cost us voters who had money on Sime Darby about 4 billion Ringgit. So why are Chin Kwai Fatt and Johan Raslan allowed to get their fingers into even more pies, as days go by?

How many votes will Johan Raslan cost the BN, come the 13th General Election?
For a lot of us, we do not like to 'rock the boat'. But when our ability to go about our business without having to worry about fundamental things, like, whether we can trust the audited financial statements, for example, is affected by the unwillingness of the authorities to bring crooks to book, then don't blame us for not looking the other way any longer.

The Sarawak results have shown that for some of us, we are willing to take the risk with the "unknown", when the "known" no longer show the willingness to protect our money from the crooks. If we cannot do business in peace, then why should we throw our support blindly to anyone?

We can figure out ways to protect our wealth from street crime, but if the ruling parties do not do a thing about the crooks walking around in the corridors where we have our money invested, then we cannot keep quiet any longer.

Friday, April 15, 2011

PwC Malaysia is a disgrace to the ICAEW (The Institute of Chartered Accountants in England and Wales)

If you want to train as an ICAEW accountant, Malaysia is one of the four countries apart from the UK where you can do so. Chin Kwai Fatt, Johan Raslan, V.U Kumar and Sridharan Nair are amongst the PwC partners in Malaysia who have been admitted to the ICAEW.

Mr Gerald Russell, President of the ICAEW, could you ask the member known as Kwai Fatt, Chin to make a report to the MCMC (Malaysian Communications and Multimedia Commission) or the Royal Malaysian Police Force, on this blog, please?

The ICAEW's Code of Ethics is regarded so highly that it was used as a model for the International Ethics Standards Board of Accountants in 2009.

But is the ICAEW so beholden to PwC Malaysia, that it will throw a cloth over the Code of Ethics back in the UK, whenever it casts its eye on it's members in Malaysia?

"ICAEW believes that integrity is fundamental to ethical behaviour. Ethical behaviour is not just a matter of concern and media debate but of crucial importance to individuals, organisations and markets."

How does the ICAEW view the following acts? Do these acts exhibit the highest standards of integrity, or plain old fraud?

"COMPUTER and services giant International Business Machines (IBM) is acquiring the consulting and technology services arm of accounting firm PricewaterhouseCoopers (PwC) for US$3.5 billion (US$1 = RM3.80) in cash and shares. (Business Times, 2002)

The sale of the consulting business to IBM Corp., was to include all ongoing businesses, assets and liabilities. But in Malaysia, what has happened is that the ongoing businesses at that time, as well as the assets were sold as part of the company renamed as PwC Consulting Malaysia Sdn Bhd (289801-A), under sham Directors, while the contingent liabilities to the tune of several hundred million Ringgit were kept hidden in the real company that handled the consulting business, PricewaterhouseCoopers Consulting Sdn Bhd (464379-U).

PricewaterhouseCoopers Consulting Sdn Bhd (464379-U), is a company that still exists, and has the Executive Director of PwC Malaysia, Dato Johan Raslan (member of ICAEW), The MD of PwC Malaysia, Mr Chin Kwai Fatt (member of ICAEW), the Tax Partner of PwC Malaysia, Mr Koo Chuan Keat , and Senior Partner in PwC Malaysia, Mr Lee Tuck Heng as the Directors and/or shareholders till today."

"Ethical behaviour in business is something that the ICAEW considers to be of critical importance as a general issue to maintain confidence in markets."

Mr Gerald Russell, will you consider the following acts by the members of your Institute, namely Chin Kwai Fatt and Johan Raslan, as sound business ethics?

"PricewaterhouseCoopers Consulting (East Asia) Sdn Bhd was renamed as PwC Consulting Malaysia Sdn Bhd (289801-A) on 20-11-2001, to be disposed off to IBM Corp. This happened while the real consulting arm of PwC in Malaysia, PricewaterhouseCoopers Consulting Sdn Bhd (464379-U), still remains under the ownership of the current Directors of PwC Malaysia.

Ms Chu Kum Yoon, a Company Secretary, was appointed a a Director in PwC Consulting Malaysia Sdn Bhd (289801-A). 
Ms Chu Kum Yoon, has never played a role in the Consulting business of PwC.

Her appointment, and that of Mr Foong Weng Chee were sham appointments. As for Mr Foong Weng Chee, he was at that time, and still is, running his own accounting firm, Foong Weng Chee & Co. Mr Foong Weng Chee has also never played a role in the consulting business of PwC"

Chin Kwai Fatt, MD of PwC Malaysia, member of the ICAEW. Somebody but him a pen so he can lodge a report against us, please.
ICAEW Code of Ethics. The Institute's Code of Ethics (the Code) applies to all members, students, affiliates, employees of member firms and, where applicable, member firms, in all of their professional and business activities, whether remunerated or voluntary.

Johan Raslan, Executive Chairman of PwC Malaysia and member of the ICAEW. What Code of Ethics??

What does the ICAEW Code of Ethics say about signing false declarations? We are not sure, but we are very sure about what the Malaysian Penal Code has to say on that.

"Chin Kwai Fatt (member of the ICAEW) 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(member of the ICAEW) 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 (member of the ICAEW), 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 (member of the ICAEW), 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

Mr V.U Kumar, Senior Partner of PwC Malaysia and member of the ICAEW. Also member of the Malaysian Institute of Accountants Investigation Committee. We hope that the ICAEW's disciplinary committees are less coy when it comes to investigating its members from PwC Malaysia.

In the public interest’ is a phrase used by politicians, regulators and others to justify all manner of actions, inactions and policy proposals~ICAEW’s review of ‘the public interest': matters to be considered in its application"

Is it in the public interest to investigate the allegations against the members of the ICAEW, who also happen to be senior partners in PwC Malaysia, Mr Gerald Russell?

Mr Sridharan Nair,  the New Kid on the Block, Senior Partner of PwC Malaysia, and member of the ICAEW.