Say No To Hudud

Sunday, January 29, 2012

Is the PCAOB a toothless tiger? PwC Malaysia fraud and suppression of evidence goes unpunished.

Under the Sarbanes-Oxley Act, non-U.S. public accounting firms that audit or play a substantial role in the audit of U.S. issuers are subject to oversight by the PCAOB. Currently, over 900 non-U.S. audit firms from more than 85 countries have registered with the PCAOB. Under the Act and the Board's rules, non-U.S. registered firms are subject to PCAOB inspections in the same manner as U.S. firms. PricewaterhouseCoopers Malaysia is registered with the PCAOB

PwC Malaysia forced to Reveal 162 Documents that they were hiding.

Kuala Lumpur High Court Scandalised, courtesy of PwC Malaysia

James Doty, Chairman of the Public Company Accounting Oversight Board said in April that the inability to inspect auditors in China represents a “gaping hole in investor protection.” The board regulates and inspects registered auditors under the oversight of the SEC. (Copyright: Rich Clement/Bloomberg)
While Mr James Doty can lament about the inability of the PCAOB to inspect auditors in China, he should be more worried about the "gaping hole in their oversight" that allowed the PCAOB to register PwC Malaysia, even though they were aware of the fraud committed by PwC Malaysia back in 2003. 

"PricewaterhouseCoopers LLP and its Office of General Counsel were made aware of the fraud allegations against PwC Malaysia back in 2003, and that they did nothing about it.

PricewaterhouseCoopers Malaysia, together with all the other offices of PwC worldwide were supposed to allow IBM Corp to acquire their Consulting Business, as part of a global acquisition by IBM Corp of the Consulting and Technology arm of PwC.

According to the letter sent to the SEC in The United States as well the Article of Non Opposition issued by the EEC in Europe, there was no way for the Consulting arm of PricewaterhouseCoopers in Malaysia to remain exempt from the sale. And the consulting arm of PwC Malaysia was and still is PricewaterhouseCoopers Consulting Sdn Bhd (464379-U), which till today remains under the ownership and control of the MD of PwC Malaysia, Chin Kwai Fatt; the Executive Chairman, Johan Raslan and other Senior Partners of PwC Malaysia. 

But what happened in Malaysia is an interesting sleight of hand, where a company called PricewaterhouseCoopers Consulting (East Asia) Sdn Bhd, was renamed as PwC Consulting Malaysia Sdn Bhd (289801-A) on 20-11-2001, to be sold off to IBM Corp as the 'legitimate' Consulting arm of PwC in Malaysia."

The PCAOB can obtain even further evidence of the fraud and suppression of evidence. All they need to do is to call Johan Raslan, Chin Kwai Fatt and Khoo Chuan Keat and ask the three to give copies of their affidavits opposing the application for discovery of documents by the plaintiffs in June and July of 2011, in the Kuala Lumpur High Court.

These three, Malaysia's very own version of the '3 Idiots', are directors of PricewaterhouseCoopers Consulting Sdn Bhd, and the PCAOB can read for itself how their affidavits signed in mid-2011 show clear evidence of suppression of evidence, concealment and non-disclosure, of relevant emails, working papers, business plans, valuation reports, letters and other documents. They have been trapped by the affidavit by a Miss Ho, whose affidavit signed in January 20, 2012, clearly lists all 162 documents that they have been concealing all these years.

The PCAOB can also call Sreedharan Nair and Eric Ooi, the Senior Partners of PwC Malaysia who are contesting to be the next MD of the firm in the elections soon, and get the truth from them.

Their suppression of evidence is a clear violation of the IBM takeover and the SEC rules back in 2002. So what happens to the entire transaction now?

Click here for Johan Raslan's idiotic tweets while his firm is undergoing a crisis

What sort of checks and balances does the PCAOB have, when they are able to register a firm like PwC Malaysia, which not only commits fraud, but keeps it going for years and years.

What is the difference between PwC and Arthur Andersen? One shreds documents and the other conceals them.

What is the PCAOB going to do about PwC Malaysia? Or are they going to continue ignoring the fraud?

Thursday, January 26, 2012

PwC Malaysia Forced To Reveal 162 Sensitive E-Mails, Letters and Documents That Were Previously Concealed From The Kuala Lumpur High Court!

What the Kuala Lumpur High Court failed to do rightfully, in July of 2011, PwC International finally did, by ordering PwC Malaysia to give discovery of documents.

The extent of the concealment, has been so shocking and prejudicial that a continued fair trial is no longer possible. 

Chief Justice Tan Sri Ariffin Zakaria. 
Learned Chief Justice, had the Kuala Lumpur High Court rightfully ordered the Discovery of Documents before the trial , these 162 documents would have made the trial a non-starter. Will the Learned Chief Justice change the rules of the High Court after this?
This latest revelation may seem unbelievable to some, but a hundred and sixty two documents, concealed till now, cannot lie. While we have tried time and again to highlight the sheer perfidy that PwC Malaysia is capable of, even we did not expect that PwC Malaysia would have been capable of this latest shocker.

Whatever your opinion of PwC Malaysia has been till now, be prepared to have it replaced with one of sheer disgust and contempt.

PwC International, is as guilty as PwC Malaysia in allowing this state of affairs to continue for so many years, and they know that their action, or inaction in the face of clear cut fraud, has put the entire brand of PricewaterhouseCoopers at risk. That they have ordered PwC Malaysia to allow discovery of documents, shows that this scandal has implications beyond the borders of Malaysia.

Coenraad Van Beek, Global Leader for Ethics and Business Conduct at PwC International.

Coenraad Van Beek was contacted back in 2010, and was made fully aware of the allegations of fraud against PwC Malaysia, but chose to do nothing.

Paul Boorman, Global Leader for Operation for PwC International.

Paul Boorman, was made aware of the allegation of fraud against PwC Malaysia, and he also chose to do nothing.

In this post, we first showed that PricewaterhouseCoopers LLP, and the Office of General Counsel, were aware of the fraud by PwC Malaysia way back in 2003, and how they chose to do nothing.

Reply from the Office of General Counsel, New York. 
We have another question for the office of General Counsel for PwC International now. Do you practice concealment only in Malaysia or is this a global standard for PwC?

We are well aware that PwC International has been complicit with PwC Malaysia in allowing this acts of fraud and deceit to go on for more than a decade.

Welcome to your comeuppance.

More to come...

Wednesday, January 25, 2012

DPM Muhyiddin please be careful, PwCgate can overshadow Cowgate

Deputy Prime Minister, Tan Sri Muhyiddin Yassin, the market talk is that PwC Malaysia will be picked to do the audit for the National Feedlot Corporation, NFC, soon.

Can this be true?

Tan Sri, can you imagine Chin Kwai Fatt, the MD of PwC Malaysia, and master of document fabrication, auditing Cowgate?

Chin Kwai Fatt, an original member of the Malaysian 3 Idiots, to audit the NFC?

Chin Kwai Fatt is now trapped by the fact that one of the documents he has fabricated in an ongoing Kuala Lumpur High Court case not only contradicts his own witness statement, but also the amended defense of all the defendants.

Why is the Auditor General's report not enough for the truth about the NFC to be made public?

Even if an external audit is needed, please pick a reputable audit firm to avoid the matter becoming worse. Can Tan Sri imagine the fallout when the auditors are exposed as bigger crooks than those they audit?

Tuesday, January 17, 2012

Felda listing tainted by PwC Malaysia Audit:PM Najib should ask Johan Raslan to immediately answer the following questions

According to our PwC Malaysia insider, the evidence of fabrication of documents by PwC Malaysia is going to come out in open court in February 2012. To add insult to injury, a little bird says that Chin Kwai Fatt himself will be shown as having fabricated one of the documents during the trial...

The listing of Felda Global Ventures Holding should rightfully be an event that will bring great joy to the Felda settlers, but could there be a fly in the ointment that we are missing, that can turn what should be tears of joy into genuine tears of sorrow and grief....?

The numbers are now being crunched by PwC Malaysia, in preparation for the listing of FGVH, and therein lies the problem.

Will institutional investors trust an audit done by PwC Malaysia? Will any investor worth his salt trust an audit done by an audit firm like PwC Malaysia that fabricates documents and submits them in a bundle to a Court of Law?

Is it worth risking the future of thousands of settlers and their families, when the proof of fabrication comes out in open court, and the forgers are found to be the very same chaps running the audit firm behind the Felda listing?

PM Najib, please get Johan Raslan and Co to issue a public denial that they have ever fabricated documents within the next 48 hours.  
A chain is only as strong as its weakest link, and in FGVH's planned listing, the chain is weakest at the point where PwC Malaysia have been allowed to play a role. With a litany of misdeeds longer than Yao Ming's arm, how can they have been picked over proper and reputable firms like Ernst & Young or KPMG to do the audit?

The interest of the Felda settlers has been compromised, but it is still not too late. If Johan Raslan and Co refuse to issue a public denial that they have fabricated documents in the next 48 hours, get them to step down and place an untainted audit firm to continue with the work.

Ask Johan Raslan and Chin Kwai Fatt to deny that Document 41 in the first bundle is a fabrication.

Ask them to publicly deny that Chin Kwai Fatt's email in the second bundle, which contradicts his own witness statement, is a fabrication.

Ask them why Chin Kwai Fatt, Johan Raslan and VU KUmar just sat mutely at counsels' table, while their counsel was busy misconstruing their instructions?

Can we honestly say that the listing of Felda Global Venture Holdings will not be affected when the news comes out that the auditors behind the listing are guilty of fabricating documents as a part of their legal defense strategy?

PM Najib, we, the group of six behind this blog, are fully behind you, but we must ask you this painful question. Can you risk having the misdeeds of PwC Malaysia and Johan Raslan costing you crucial votes in GE 13?

Can we risk having the Felda settlers angry with the outcome of the listing simply because investors everywhere start hearing caveat emptor whenever someone whispers PwC Malaysia into their ears?

PM Najib, it all boils down to the simple question of whose interests are more important. That of the hardworking Felda settlers, or of the crooks who walk the halls of PwC Malaysia.

Sunday, January 15, 2012

Will Khoo Chuan Keat be the fall guy for PwC Malaysia : Will PwC Malaysia reveal all internal emails and documents as part of the discovery application?

Kuala Lumpur High Court scandalised - Part 1

Kuala Lumpur High Court scandalised - Part 2

Khoo Chuan Keat and PwC Malaysia run the real risk of having internal emails and documents left out in the discovery of documents being published in this blog
Khoo Chuan Keat, the man PwC Malaysia turn to when they need an affidavit signed post haste, has to think very carefully before he puts his John Hancock down on the next affidavit someone slaps on the table in front of him.

PwC Malaysia already find themselves with no choice but to cave in and agree for the plaintiffs' application for discovery of documents, and they run the risk of seeing internal emails and documents they leave out of the discovery being published in this blog and elsewhere.

Rabindra Nathan, PwC Malaysia's erstwhile counsel, found himself having to 'misconstrue' his clients' instructions again and again in order to keep the discovery from happening.

On 11.8.2011, Rabindra says this in open court," On the evening of 9th August, I was made aware that there are some newly discovered documents...". 

In his correction later, Rabindra says," My understanding at that time was that these were documents that had recently been discovered....It turns out NOT ALL of these documents fell in that category." 

On 6th January 2012, Khoo Chuan Keat in his latest affidavit, has to cover a lie to cover other lies with yet another lie, ".....counsel stated that these instructions as to where the documents had been discovered had been misconstrued. "

So, now we wait for the next attempt by PwC Malaysia and its cohorts to cover up their shenanigans.

Khoo Chuan Keat may well become one of the sacrificial lambs PwC Malaysia has to offer to bring matters to a close, but even a thousand Khoo Chuan Keat's will not change the simple fact that when it comes to PwC Malaysia, abundans cautela non nocet rings true. One can never be too careful.  

Thursday, January 12, 2012

Shearn Delamore's Rabindra Nathan removed as counsel : PwC Malaysia cave in and finally agree for Plaintiffs' application for discovery of documents

Kuala Lumpur High Court Scandalised - Part 1

Kuala Lumpur High Court Scandalised - Part 2

Khoo Chuan Keat, Senior Executive Director for PwC Malaysia, should be a man who is running scared now. But who knows what runs in the minds of those who hold senior positions in a firm like PwC Malaysia, when they sign false affidavits like it was going out of style.

The latest affidavit signed by Khoo Chuan Keat, dated January 6th in the year 2012, has the following as a part of the sworn statement:

i) There is no contradiction whatsoever between what was stated by counsel for the 2nd Defendant on 11.8.2011 and 19.9.2011 before this Honourable Court and the Defendants' 1st Affidavit.

ii) On 11.8.2011. the 2nd Defendants' counsel ............ stated that these instructions as to where the documents had been discovered had been misconstrued....

Khoo Chuan Keat has knowingly lied in his Affidavit, which in most countries, will mean he should be looking forward to some jail time.........
PwC Malaysia counsel, Shearn Delamore's Rabindra Nathan, knew on the 11th of August 2011, that his instructions with regards to the filing of the documents "found" in the purported safe was false, with Rabindra having to state that he has misconstrued his clients instructions to the point that they cannot file an affidavit as promised by Rabindra in his counsels' undertaking.

As will be shown in the days to come, Rabindra has gone from misconstruing his clients' instructions as to when the documents were "found", to which of the documents were "found" first and which later, and now to where the documents were "found".

PwC Malaysia now find themselves painted into such a tight corner because of the continuous "misconstruing" their instructions have been subjected to by their counsel, Rabindra S Nathan, that they have finally, after seven long months, agreed to show their documents, which is something the Honourable Tuan Vazeer Alam Mydin Meera could have decided to allow from day one.

Johan Raslan, Chin Kwai Fatt and Khoo Chuan Keat are fast turning into Malaysia's version of the 3 Idiots ala Amir Khan....