Say No To Hudud

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?

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