MSWG (Minority Shareholder Watchdog Group) - Will You Speak On Behalf Of The Minority Shareholders of Maxis?

Letter from the General Counsel of Maxis, Mr Stephen Mead. Received from a Maxis insider

Ms Rita Benoy Bushon, the Chief Executive Officer of MSWG

Ms Rita Bushon, if you refer to the letter above, from the General Counsel of Maxis Mr Stephen Mead, the minority shareholders of Maxis have been asked to take up their concerns regarding PwC as the auditors for Maxis, with the appropriate regulatory authorities or directly with PwC themselves.

Will you now stand up and speak on behalf of the minority shareholders of Maxis? Please call Mr Stephen Mead to get a copy of the complaint letters from the minority shareholders.

You will find that the minority shareholders are concerned with:

1. The fact that PricewaterhouseCoopers Malaysia, under it's MD Mr Chin Kwai Fatt, have managed to hide several hundred millions of Ringgit in contingent liabilities under a company called PricewaterhouseCoopers Consulting Sdn Bhd (464379-U).


2. That despite the global sale of the consulting business of PwC to IBM Corp in 2002, Chin Kwai Fatt & Co have managed to retain the control and ownership of PricewaterhouseCoopers Consulting Sdn Bhd (464379-U), by renaming PricewaterhouseCoopers Consulting (East Asia) Sdn Bhd as PwC Consulting Sdn Bhd (298801-A) to become a substitute for the real consulting arm of PwC Malaysia, PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) in the sale to IBM Corporation worldwide.

3. That Chin Kwai Fatt & Co also appointed Ms Chu Kum Yoon, a Company Secretary, and Mr Foong Weng Chee, who runs his own accounting firm, as the Directors for PwC Consulting Sdn Bhd (289801-A). This was done despite the fact that these two 'sham Directors" have never been involved with the consulting business of PricewaterhouseCoopers in any way. All these and more has been done just to defraud the creditors of PricewaterhouseCoopers Consulting Sdn Bhd (464379-U).

4. That despite the fact that Raja Tan Sri Dato' Seri Arshad (the former Chairman of PwC), who signed a sworn statement  in 2001 in which it is attested that PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) is a member firm of the global organisation of PricewaterhouseCoopers; 

5. As well as another sworn statement by Dato Johan Raslan, the current Chairman of PwC in Malaysia, in which it is stated that the Court of Appeal finds that the claims made against PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) could not be said to be manifestly unsustainable, Chin Kwai Fatt still signed a false declaration in 2008 that the firm of PricewaterhouseCoopers Consulting Sdn Bhd (464379-U), at the date of the signing is able to meet its liabilities as and when they fall due, without disclosing the contingent liabilities.

6. Furthermore PricewaterhouseCoopers Consulting Sdn Bhd (464379-U)  ceased operations in 2006, so there is no way for it meet its cash flow solvency against several hundred million in contingent liabilities, and neither is it demonstrated that PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) is able to meet its balance sheet solvency test. Even then, another Senior Partner in PwC Malaysia, Khoo Chuan Keat signs a false declaration in 2009 that the firm of PricewaterhouseCoopers Consulting Sdn Bhd (464379-U), at the date of the signing is able to meet its liabilities as and when they fall due, without disclosing the contingent liabilities.

Which appropriate regulatory body will take action against PwC in this country? The fraud has been ongoing for more than 9 years now, and yet there has been not a single regulator who has taken action against PwC.

Mr Stephen Mead has also asked the minority shareholders to try to address the concerns to PwC directly, but will PwC even bother to reply, seeing that there is no relationship between the minority shareholders and the company auditors?

No shareholder, whether big or small, will be able to stomach the fact that they cannot get any answers when their company auditors are implicated in fraudulent acts, or that there is no regulatory body that seems to be able to question the auditors.

Ms Rita Bushon, will you now stand up for the minority shareholders of Maxis, and get them the answers they want to the burning questions above?

Former Chairman of PwC, signed a sworn statement that PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) is a member firm of PricewaterhouseCoopers globally. 

Chin Kwai Fatt, the mastermind behind the ongoing fraud involving PricewaterhouseCoopers Consulting Sdn Bhd (464379-U)
 is now aggressively lobbying his old buddy, Idris Jala, and PEMANDU, for ETP jobs. (story coming soon)