Say No To Hudud

Sunday, July 31, 2011

Johan Raslan under pressure to resign

Chin Kwai Fatt to appear at the KL High Court in August 2011 as the defendant in a professional negligence suit.

While PwC Malaysia is going all out to paint the picture that everything is well, and it's Chairman Datuk Seri Johan Raslan is happily tweeting away (!/johanraslan ), the court date for one of the several suits they are facing has finally arrived.

One has to defend himself in court, while the other tweets..Which sort of explains why Johan Raslan is under pressure to resign

Datuk Seri Johan Raslan has proven himself to be an ineffective Chairman for PwC Malaysia; one who has no control over much at all. And the pressure on him to resign is increasing by the day.

We will give an example of how Johan Raslan can place ethics below everything else when it comes to personal benefit.

He knowingly signed on as the majority shareholder and as a Director of PricewaterhouseCoopers Consulting Sdn Bhd (464379-U), at Chin Kwai Fatt's behest, even though by doing this, Johan Raslan knew he was becoming party to the fraud being perpetrated by PricewaterhouseCoopers Consulting Sdn Bhd on its creditors. But the lure of becoming the Chairman pf PwC was too great for him to worry about silly things like ethics and professional standards.

He has also been privy everything else that has been going on, especially with Chin Kwai Fatt in the picture, but chose to 'buat bodoh'. At one point he was even dreaming of becoming the next Chairman of the Securities Commission, a possibility that is all but destroyed right now, thankfully.

For the sake of ambition and power, Johan Raslan has allowed Chin Kwai Fatt and other senior partners in PwC Malaysia to compromise the integrity and the name of the firm. 

Perhaps he can tell the Malaysian public via the media, why he uses the firm of Roger Yue, Tan & Associates as the auditors for PricewaterhouseCoopers Consulting Sdn Bhd (464379-U), even though he must have known as a member of the Securities Commission of Malaysia's Corporate Governance Consultative Committeethat the engagement partner for Roger Yue, Tan & Associates was charged by the SC in the Kuala Lumpur Sessions Court for abetting a listed company in submitting false information to Bursa Malaysia?

When Tan Sri T. Ananda Krishnan asked some serious questions of both your and your firm's conduct and acts, you chose to hide from him, just like Chin Kwai Fatt did. How are your staff to consider you as a leader when you cannot even defend your own acts to your client?

Now with DRB-HICOM having dropped your firm as auditors, and the relationship PwC Malaysia has had with the GLC's, PEMANDU, Khazanah etc in jeopardy with the tweets insulting the Prime Minister and the Royal Malaysian Police by your senior partner, how can anyone who draws a paycheck from PwC Malaysia consider you as an able leader?

Perhaps it is time for Datuk Seri Johan Raslan to take a serious look at the writing on the wall, and take an honourable exit while there is still some dignity left in doing so.

Do not be mistaken into thinking that the Captain must not abandon a sinking ship, as you have never been the Captain of your ship, but just a front for the real Captain, Chin Kwai Fatt.  

Saturday, July 30, 2011

Putrajaya deeply unhappy with PwC Malaysia

Status quo, you know, is Latin for 'the mess we're in'.
Ronald Reagan

Perhaps this is what is running through the minds of Chin Kwai Fatt & Co at the moment; how to control the damage from the tweets that poked fun at Premier Najib so that the status quo can be maintained.

Lets take a quick look at the various positions held by the Chairman of PwC Malaysia, Datuk Seri Johan Raslan.

"Government appointments: Board member of Putrajaya Corporation; member of the International Advisory Panel of the Labuan Financial Services Authority ('LOFSA')member of the Securities Commission of Malaysia's Corporate Governance Consultative Committee; board member of Kumpulan Wang Persaraan (Diperbadankan) ('KWAP'). He was previously chairman of the Malaysian Financial Reporting Foundation ('FRF'), the body which oversees the Malaysian Accounting Standards Board. During his tenure at FRF, the decision was made to converge Malaysian accounting standards with International Financial Reporting Standards by 2012.

Accounting profession: President of the Malaysian Institute of Certified Public Accountants; Council Member of the Malaysian Institute of Accountants; member of Global Public Practice Committee.

Other appointments: Chairman of Institute of Corporate Responsibility, Malaysia ('ICRM') - a network of companies committed to advancing responsible business practices - ; member of the board of the Kuala Lumpur Business Club; member of the Board of Trustees of the Tun Suffian Foundation; Adjunct Professor of University of Malaya; Trustee of the Sultan Azlan Shah Foundation; Eisenhower Fellow."

This is just the list for one person in PwC Malaysia, albeit one of the top people there. But it does serve to illustrate how extensively Chin Kwai Fatt & Co have built their network into the financial reporting, auditing and regulatory frameworks in this country. None of this will be possible if Putrajaya no longer views PwC Malaysia as the go-to-guys, as they are today.

A fraudulent intent, however carefully concealed at the outset, will generally, in the end, betray itself. 
Titus Livius 

Has the fraudulent intent that PwC Malaysia has, finally been exposed for all to see. That their courtship of the movers and shakers in Putrajaya, and the various government investment arms, was sheer hypocrisy, hiding their disdain for the ruling government?

There are lines that cannot be crossed when the status quo has to be maintained. Poking fun at the Prime Minister is definitely one of those lines, and the only way PwC Malaysia can outdo themselves now, is if there are also tweets by their people poking fun at the King. 

This is a betrayal of trust by PwC Malaysia towards the ruling government, despite the many GLC's and government projects for which they were allowed to be auditors and consultants. And the rumble is that Putrajaya is deeply unhappy with PwC Malaysia after the latest revelations.

VU Kumar (2nd from right) and Chin Kwai Fatt (1st from right). Will VU Kumar be able to show his face in Putrajaya after  his tweets?
The government has stood by PwC Malaysia, despite their interference with the regulatory framework in the country, despite the many allegations of fraud against Chin Kwai Fatt & Co, despite the contemptuous submission of doctored documents to the justice system, but can Putrajaya continue to stand by and allow PwC Malaysia to get away with all these and more, when they actually bite the hands that feed them? 

There comes a point in time when the necessity to maintain the status quo is outweighed by the damage that the status quo can inflict. With the ETP under Premier Najib gaining traction, can Putrajaya continue to take the risk that comes hand in hand with the name of PwC Malaysia? 

We have seen how DRB-HICOM has learned that it is better to drop PwC Malaysia than to continue oblivious to the baggage they bring to the table. 

Will Putrajaya be forced to do the same?

Friday, July 29, 2011

PwC Malaysia: DRB-HICOM gone, Maxis and CIMB to follow suit?

As of 2010, the firm of Ernst & Young has been appointed as the auditors for DRB-HICOM Bhd, replacing PwC Malaysia. 

From left: DRB-HICOM group director Abd Malek Abd Majid, PLUS Expressways MD Datuk Noorizah Abdul Hamid, Guinness Anchor Bhd's Ong Ping Ping, Securities Commission chairman Tan Sri Zarinah Anwar, His Royal Highness Raja Nazrin Shah - Crown Prince of Perak, Star Publications (M) Bhd group MD and CEO Datin Linda Ngiam, PwC Malaysia Executive Chairman & ICR Malaysia chairman Dato' Johan Raslan, Tex Cycle Technology (M) Bhd MD S. Perry, Esso Malaysia's Manoj Devadasan and Faber Group's Khalid Abd Majid.
Dato’ Johan Raslan, Chairman of the Institute of Corporate Responsibility (ICR) Malaysia, said, “We recognise that in doing business, we must be aware of our surroundings and the communities we operate in – every decision a CEO or the Board makes has implications for others. We can’t hope to grow sustainable businesses without impacting the lives of those involved – our people, suppliers, our customers, our community.” Johan is also Executive Chairman of PwC Malaysia.

The irony of the situation is that DRB-HICOM has shown that it cares for the interests of its shareholders, and has taken the necessary steps to alleviate any concerns the minority shareholders may have had in having PwC Malaysia as the auditors. 

PwC Malaysia no longer audits DRB-HICOM Bhd, 
Share price for DRB-HICOM seems to be doing quite better now, thank you very much!!
While the shareholders of DRB-HICOM are probably feeling quite pleased with themselves, we have to wonder if the shareholders of Maxis and CIMB are happy with PwC Malaysia as the auditors for their companies?

We have seen how PwC Malaysia has no qualms about submitting doctored documents to the High Court for an ongoing civil suit, and how the MD of PwC Malaysia, Mr Chin Kwai Fatt has no trouble signing false declarations, so for minority shareholders to feel better when they no longer see the name PwC in the financial reports for their companies is not really a big surprise.  

We know that Tan Sri Ananda Krishnan is not very happy with the top management of PwC Malaysia, and that Dato Sri Nazir Razak is probably not too happy with PwC Malaysia poking fun at his brother, the Prime Minister of Malaysia, so we have to wonder how much longer PwC Malaysia will remain as auditors for them....

Will PwC Malaysia's client list look as impressive a year or two down the road, or will it be but a pale shadow of its former glory? And will there be many tears shed for this fall from grace......probably not..

Wednesday, July 27, 2011

1 week ultimatum for PwC Malaysia to issue a public apology to Prime Minister Najib and the Royal Malaysian Police

 uthaya kumar 

PwC Malaysia's litany of misdeeds is a long one. But the latest episode, which was highlighted here and here, is not a mere infringement of the laws of the land, but something that hits closer to the heart of the nation than any else

While we have all come to expect that the standard response from PwC Malaysia on any and all allegations against them will be a media blackout of their activities, accompanied by a deafening silence; the latest case where we have seen a senior partner of the firm, Mr VU Kumar, shamelessly poke fun at PM Najib and the Malaysian Police via his widely followed tweets, is an act which PwC Malaysia should not be allowed to handle with the same method.

VU Kumar, it is said that the written word lives forever....and when it comes to tweets, did you know that the Library of Congress archives every public tweet since March of 2006....?

PwC Malaysia must come up with a public apology on the blatant disrespect they have shown to the Prime Minister and the Malaysian Police, via a clearly worded statement in the newspapers, within a week.

It is one thing for PwC Malaysia to think that they can ride roughshod over their creditors, the shareholders of their many corporate clients, the International standards of the auditing world, the Malaysian regulators, the laws of the land and many many more; but if PwC Malaysia think that they can get away with insulting Premier Najib, then it is time they meet their comeuppance.

YB Khairy Jamaluddin, who has walked the talk in support of PM Najib,  is not a happy man with PwC Malaysia 's  insolence.
YB Khairy Jamaluddin, who has walked the talk in support of Premier Najib, is reportedly very unhappy with the insolence shown in the tweets by PwC Malaysia's senior partner. The next meeting of the Jawatankuasa Pergerakan Pemuda UMNO Malaysia, will see the matter being brought up.

It is one thing for anti-establishment groups or individuals to poke fun at the leaders of the nation, but when the largest audit firm in the country, which claims a lion's share of consulting contracts from GLC's and whatnot, does the same, it feels like betrayal of the highest order.

And this brings us to ask a question of Dato' Sri Nazir Razak. Sir, why do you still support this bunch of miscreants at PwC Malaysia, when they can so openly insult your brother, the Prime Minister of the country?

Dato' Sri Nazir Razak, no one can blame you for  defending the honour of your brother.

Tuesday, July 26, 2011

PwC Malaysia's Public Relations blunder

 uthaya kumar 

PwC Malaysia performs many important consulting jobs for PEMANDU, KHAZANAH, and many GLC's. Its clients include Sime Darby, Maxis, Axiata and it even plays a role in development projects like the Bintulu Port.

How could a senior partner in PwC Malaysia be so clueless as to bite the very hand that feeds his firm? What was VU Kumar attempting to show when he tweeted in a manner to not only poke fun at PM Najib and the Royal Malaysian Police, but also insult them?

VU Kumar and 'his bite the hand that feeds' him tweets.
VU Kumar is basically Chin Kwai Fatt's right hand man. How is Chin Kwai Fatt going to explain to Tan Sri Koh Tsu Koon and Datuk Seri Idris Jala the next time he goes to them with his cap in hand hoping to win another cushy contract?

Along comes VU Kumar to give the 'dynamic duo' another headache...One can imagine that the wide grins are rarely seen nowadays
While everyone is entitled to their own opinion on what is happening in the political scene, for VU Kumar to put his thoughts in the public domain in a manner which can harm the future revenue of the firm that pays his salary, is an act that is simply gormless.

Or is PwC Malaysia's reading of the situation such that Chin Kwai Fatt and VU Kumar are hedging their bets, and hoping to look a little anti-establishment in case the other side comes into power?

Whatever the reasons for the tweets, whether planned or fatuous, the damage will reverberate through the corridors of PwC Malaysia for a while yet. Perhaps it is time for PEMANDU and KHAZANAH to start looking at the other players, who probably know better on how to get the job done and keep their big mouths shut at the same time. 

Sunday, July 24, 2011

Senior PwC Malaysia Partner pokes fun at PM Najib and the Royal Malaysian Police

 uthaya kumar 
                    9 Jul

 uthaya kumar 

 uthaya kumar 

 uthaya kumar 

Mr V U Kumar, Senior Partner in PwC Malaysia, tweets as well...
How will Datuk Seri Johan Raslan explain the tweets by VU KUmar to PM Najib the next time he goes in search of government contracts for PwC Malaysia?

Despite all the leeway and favours that PM Najib's administration  has shown to PwC Malaysia, there are still those that are ungrateful...
How will these two characters explain to Idris Jala, Koh Tsu Koon and PM Najib on the open ridicule shown by one of their senior partners towards the government?
Perhaps PwC Malaysia have come to the conclusion that by virtue of being the largest audit firm in the country, they can get away with anything. Be it breaking rules, laws, committing fraud, or poking fun at the Prime Minister and the Royal Malaysian Police in passing.

Are they really that untouchable?

Tuesday, July 19, 2011

Errol Oh, does PwC Malaysia deserve to be let off the hook?

If a firm doesn't document its work, there is no basis for us to confirm that the firm has performed its function. One of the principles that we have adopted in our inspections is that if you fail to document, we will consider that you have not done the audit procedure. This is a very strong position that we have taken,” added Nik Mohd Hasyudeen. 

Said the AOB in the annual report: “Other than instances where there was insufficient documentation for the audit evidence obtained, there were instances where the necessary audit procedures and evidence were clearly not performed or obtained. It is pertinent to recognise that without sufficient evidence and analysis, the auditor may not have a basis to support their opinion.”

Big Four among audit firms with faults ~ Errol Oh

P. Gunasegaram, Managing Editor of The Star 
Errol Oh, Deputy Editor Bizweek, The Star
Mr Errol,

In your interview with En Nik Hasyudeen of the Audit Oversight Board, it was clearly stated that the AOB takes the question of documentation very seriously, in its inspections of the audit firms. 

We now have a problem of an entirely new nature with regards to the documentation practices of PwC Malaysia. 

You see Mr Errol, what has happened is this. We received some inside information and verified that information with documents in the public domain, that are part of an ongoing civil suit in which PwC Malaysia are defendants.

One of the documents, called Document 41 in the filing, has been found out to be doctored. You can read the details here and here.

What do we do now, when we have evidence that PwC Malaysia, on top of all the allegations of fraud against them, is now capable of submitting doctored documents to a court of law.

Does it not seem that someone must take PwC Malaysia to task on behalf of all the shareholders of the PIE's which PwC Malaysia audits. 

Perhaps a capable journalist such as yourself will be able to unearth the truth of what really goes behind the doors of the biggest audit firm in the country. And since in this particular example, Document 41 is in the public domain, a simple phone call from your news paper can have that stack of affidavits related to the case and document 41 itself on your desk, so that you can decide for yourself if PwC Malaysia deserves to be let off the hook.

We trust that you will do the right thing.

Monday, July 18, 2011

Open Letter to Sime Darby

Dato' Mohd Bakke Salleh, Group Chief Executive for Sime Darby
"An analyst, however, said the appointment of PwC was odd, considering that the firm was also the external auditor of Sime Darby and may not have been quick enough to highlight the possibility that the E&U division was incurring significant cost overruns over the last few years. "~ Sime Darby seeks legal counsel for fraud check -  May 28. 2010, The Star 

Tun Musa Hitam, Chairman of Sime Darby Berhad, who knows how wily Datuk Seri Johan Raslan is, as Johan had played a number on Tun Musa before.

"And what of PwC’s part in the Sime Darby fiasco? Of the four key findings disclosed by Sime Darby on May 13, only one – the decision to reverse revenue of RM200mil for the Qatar Petroleum project – relates to a matter taken up in accounts already audited.
The other three relate to items that have only surfaced in the current financial year. This means PwC could not have known about these figures until it begins auditing Sime Darby’s 2010 accounts. Nevertheless, some in the accounting fraternity say this may be a test case for the newly constituted Audit Oversight Board." In Search of Closure, by Errol Oh, The Star, May 22, 2010
With the latest revelations of fraud perpetrated by PwC Malaysia, we have to ask the Senior Management of Sime Darby Berhad, how they will answer the questions from the shareholders with regards to the continuing role of PwC Malaysia as the Auditors for Sime Darby.
When PwC Malaysia can stoop so low as to doctor documents they are required to submit to the courts. And when they were caught, try to push the blame to former employees, so that the current crop of leaders can wash their hands of the fraud, then the shareholders of Sime Darby will be totally justified in wondering the real worth of the audits done by PwC Malaysia for Sime Darby.
Can Sime Darby take the risk of another problem cropping up in their audits, or worse with their auditors themselves?

Friday, July 15, 2011

Open Letter to PwC Global Leaders

Once again we respectfully address the following questions to Mr Paul Boorman, the Global Leader - Operations, who oversees the PwC global operational network, and to Dr Coenraad Van Beek, the Global Leader for Ethics and Business Conduct in PwC.

Mr Paul Boorman, Global Leader - Operations for  PwC
Dr Coenraad Van Beek, Global Leader for Ethics and Business Conduct in PwC

The global brand of PwC faces an impending stain on its newly minted appearance. When an office operating under the global brand of PwC, such as the one that operates here in Kuala Lumpur, Malaysia, commits act upon act of clear cut fraud; sooner or later the stain of these contemptible deeds will besmirch the entire global presence of PwC, and people everywhere will associate the brand PwC with chicanery, and not auditing.

We have here evidence of the latest act of fraud committed by your PwC office in Malaysia, with respect to an ongoing civil suit in the Kuala Lumpur High Court.

Among the many documents filed in court by PwC Malaysia, there is one that is called Document 41. 

This document is believed to have been doctored in early 2010, but someone forgot to ensure that the pagination of the document, was double and triple and quadruple checked, so that no one would be able to discover that it is in fact, two documents fraudulently merged to appear as one.

So now we have a situation where PwC in Malaysia, has filed a document in court, which has clearly been doctored with, and with the evidence of the tampering as clear as crystal, even to an untrained eye.

First of all, there are two page 19's in the document, with contents that are entirely different from one another. Furthermore, the footer and the margins for the two pages are as different as chalk from cheese, and even the fonts used to paginate the pages are not matched. 

To add insult to injury, PwC in Malaysia is now trying to push the blame for the deception it tried to slip to the court of the land on it's former Directors, both of whom left PwC much earlier than 2010.

Pray tell, hasn't the mass shredding of paper in the Enron scandal by Arthur Andersen not taught the big audit firms a thing or two? And even if committing fraud is a standard operating procedure for PwC in Malaysia, how can the evidence that a document has been doctored be left as clear as day, especially when the document is being filed in a court of law, of all places? Shouldn't there be some sort of audit standard for ensuring that evidence of fraud is not staring everyone right in the face?

The plan is afoot to publish a book in the year 2012, in the country known widely as the United States of America, on the many acts of fraud and deception which the office of PwC in Malaysia has committed over the past decade or so. The question is gentlemen, what will be the verdict on the total absence of action by PwC's Global Leaders, such as yourselves, in all this?

Will it not seem to the readers of the incipient tome; in which it will be narrated that the Global Leaders of PwC, did nothing while PwC in Malaysia transgressed more laws and rules than you can shake a stick at; that you are as culpable as the current crop of masterminds in PwC Malaysia?

Wouldn't it be easier to ask that PwC in Malaysia just disclose who are the real people involved in the fraud involving Document 41, so that the preemptive sacrifice of a few nefarious individuals can save the rest of PwC, in Malaysia and globally, from stigma?

Think of the thousands upon thousands who carry the brand of PwC every single day with integrity and pride, and how the actions of a few here, is going to sully all that pride.

Why make thousands of innocents pay, for the despicable acts of a few?