Say No To Hudud

Sunday, April 22, 2012

PwC Malaysia's Change Of Guard, But It's Problems Have Not Gone Away

With Chin Kwai Fatt leaving, all the key players have left PwC. The new Chairman and Managing Partner must now answer the questions that hang, like the Sword of Damocles, above the seats they are to occupy.

 PwC has issued a Valuation Report of RM 75,000,000 for a client, based solely on the Intellectual Property that the client had given to PwC after paying them for a Valuation.

But now PwC have made the first two of the following points the very core of their 'new' defense in the ongoing trial, as each day gives them fewer options to fall back upon..

1. PwC now say that they did not check the Intellectual Property

2. PwC now say that they did not even verify the existence of the Intellectual Property, as ridiculous as that may sound. So ridiculous in fact, that no witnesses want to come forward on PwC's behalf.

3. They know full well that they took the Intellectual Property from the client to test it, and did not even return the Intellectual Property to the client after valuing it at RM 75 million.

4. Chin Kwai Fatt was the Quality Assurance Director for the assignment, which is why Chin Kwai Fatt is the third defendant in the lawsuit, in his personal capacity. The first two defendants being PwC itself and PricewaterhouseCoopers Consulting Sdn Bhd.

Faiz Azmi and Sridharan Nair. If someone came to you with a Unicorn, will you and your firm also give the Unicorn a valuation of RM75,000,000?

Come one, come all.. Bring your unicorns to PwC, and we will value it at RM 75 million....
 Faiz, Sridharan, it is a pity that you will have to take over with so much unresolved business. But we have to ask you this, since your firm can give a Valuation Report of RM 75 million to Intellectual Property that has now become as mythical as Unicorns.

1. How do you issue a Valuation Report of RM75,000,000 for a clients Intellectual Property , when PwC now says they did not even verify the existence of the Intellectual Property?

2. What are you going to do about the existence of the consulting arm, PricewaterhouseCoopers Consulting Sdn Bhd, which has been shut down all over the world with the sale to IBM back in 2003?

"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 in 2003.

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.

This was done to defraud the creditors of PricewaterhouseCoopers Consulting Sdn Bhd (464379-U), as there was no way to allow IBM Corp to acquire this company without disclosing the hundreds of millions of Ringgit worth of contingent liabilities PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) was hiding.

Chin Kwai Fatt and Johan Raslan, together with their co-conspirators also use a tainted Auditor to audit the books of PricewaterhouseCoopers Consulting Sdn Bhd (464379-U), to keep the contingent liabilities out of sight."
3. You must also ensure that the defendants collectively, including the firm must apologise for the suppression of the 162 documents, and which were subsequently only released halfway through the trial. The resignation of Chin Kwai Fatt and Johan Raslan alone is not enough.
4. Please also take the time to look at Jayaram Krishnamoorthy's witness statement in very great detail.
Though you may want to start with a clean slate, PwC's past has been so sullied, that you will have to make the effort to wipe the slate clean yourselves, Sridharan and Faiz.
The world is watching, the clock is ticking....