Say No To Hudud

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..

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