Chin Kwai Fatt has put the MOF in a tight spot!

http://rama4change.wordpress.com/2011/04/29/pertikaian-pendaftaran-syarikat-pricewaterhousecoopers-pwc/ Pertikaian pendaftaran syarikat PricewaterhouseCoopers (PwC) Soalan Dr. S. Ramakrishnan minta MENTERI KEWANGAN menyatakan: (a)          bagaimana syarikat PricewaterhouseCoopers (PwC) dan salah seorang ahli lembaga pengarah didaftarkan pada tarikh yang sama iaitu 1 April 2010 oleh Lembaga Pemantauan Audit (AOB) di bawah seksyen 31s (1) Akta Suruhanjaya Sekuriti, sedangkan kebanyakan ahli lembaga pengarah dilantik pada tarikh selepas 1 April 2010; dan (b)          siapa yang menandatangani surat pendaftaran untuk syarikat PwC dan ahli lembaga pengarah berkenaan? Adakah pengerusi Suruhanjaya Sekuriti atau Pengarah Lembaga Pemantauan Audit (AOB)? Mekanisma apa yang digunakan untuk menerima dan memproses permohonan berkenaan apabila Pengerusi Suruhanjaya Sekuriti hanya menandatangani pindaan tersebut pada 8 April 2010, dan Menteri Kewangan 2 pada 13 April 2010 Jawapan Tuan Yang di-Pertua, (a)          Untuk makluman Ahli Yang Berhormat, dengan penubuhan AOB berkuat kuasa pada 1 April 2010, kesemua syarikat tersenarai mesti melantik juruaudit yang berdaftar dengan AOB. Kuasa AOB untuk menolak permohonan pendaftaran dari firma audit atau juruaudit diperuntukkan di bawah Seksyen 31P Akta Suruhanjaya Sekuriti 1993 (SCA) manakala Seksyen 31s memberi kuasa kepada AOB untuk menetapkan tempoh pendaftarannya. Bagi kes PricewaterhouseCoopers (PwC), AOB meluluskan permohonan firma tersebut beserta seorang rakan kongsinya pada 1 April 2010 setelah mengambil langkah proaktif bagi memudahkan proses pendaftaran dan berpuas hati mereka mematuhi kehendak pendaftaran selaras dengan Seksyen 31P SCA. Tindakan ini dilaksanakan bagi mengelakkan syarikat-syarikat tersenarai menghadapi masalah melantik juruaudit syarikat yang lazimnya dilaksanakan pada suku kedua serta mengelak syarikat-syarikat tersebut daripada menanggung kos yang tidak perlu. Sebelum kelulusan pendaftaran diberi, firma audit dan juruaudit dikehendaki menghantar permohonan bertulis kepada AOB berserta fi pendaftaran. Setiap permohonan akan diteliti berdasarkan kehendak Seksyen 31P SCA bagi memastikan, antara lain, firma audit atau juruaudit berkenaan tidak pernah disabitkan kesalahan yang melibatkan kes penipuan atau penyelewengan, gagal mematuhi piawaian pengauditan dan tidak muflis. Walaupun peraturan mengenai yuran AOB hanya berkuat kuasa pada 15 April 2010, namun begitu, pihak AOB telah mengguna pakai surat aku janji dari firma audit bagi urusan bayaran fi pendaftaran bagi mengelakkan syarikat-syarikat tersenarai menghadapi masalah melantik juruaudit sementara menunggu peraturan tersebut berkuat kuasa. Kelewatan menguatkuasakan peraturan ini adalah untuk memastikan peraturan yang dibuat dengan teratur dan sempurna. Explore posts in the same categories: Parliament This entry was posted on April 29, 2011 at 5:51 am and is filed under Parliament. You can subscribe via RSS 2.0 feed to this post's comments. You can comment below, or link to this permanent URL from your own site. Chin Kwai Fatt of PwC Malaysia has not reported this blog to the police or the MCMC yet. And he could turn out to be a big liability for the government with GE13 approaching.

Why PwC Malaysia cannot ratify or back PEMANDU's Corporate Integrity Pledge - Part 2

When companies voluntarily sign the pledge, the companies will be part of a greater initiative to create a business environment in Malaysia that controls corruption through promoting values of transparency, accountability and good governance and strengthening internal systems that support corruption prevention.  

The programme will see companies gradually moving towards self-assessment, identifying gaps and action plans to close them and eventually reporting on anti-corruption measures, in line with the UN Reporting Guidance on the 10th Principle under the Global Compact. ~ PEMANDU Press Release

Mr Prakash Chandran, President and CEO of Siemens Malaysia, has ratified PEMANDU's Corporate Integrity Pledge

According to PEMANDU, by voluntarily signing to uphold the Principles in the pledge, companies are committing to a longer term programme to increase integrity in the Malaysian corporate sector through good governance, accountability and transparency among others.

The Pledge is backed by KPMG, whose Managing Partner, Mohamad Raslan said this to the media; "The 2009 KPMG Fraud Survey revealed that fraud continues to be a serious threat within corporate Malaysia, with 49% of companies surveyed experiencing at least one incident of fraud."

So why can't PwC Malaysia, the largest audit firm in the country, back the Corporate Integrity Pledge, and show some support to PEMANDU, who are their clients? The answer is simple. If we look at the words highlighted in red in the two preceding paras, it becomes apparent that while PwC Malaysia can claim a very close acquaintance to the word fraud, they will have a bit of a problem convincing us that they understand the meanings of the words integrity, good governance, accountability and transparency.

PEMANDU now has to ask itself how seriously the corporate sector in Malaysia will take the Corporate Integrity Pledge, when PEMANDU itself gives consulting jobs to PwC Malaysia and has even appointed PwC Malaysia to help set up an assurance framework to annually assess the quality of sources, processes and information for its annual reports?

On the one hand, the Malaysian Public and the Corporate Sector are expected to accept that PwC Malaysia can get away with not answering the allegations of fraud against its Managing Partner, Chin Kwai Fatt and his fellow senior partners, while on the other hand also swallow the fact that PwC Malaysia plays the crucial role as the independent third party which will assist PEMANDU in convincing the Malaysian Public and corporate sector that the measures taken by PEMANDU are working?

Chin Kwai  Fatt, Managing Partner of PwC Malaysia. He has not reported this blog to the MCMC or the Police yet. Neither has he denied or replied to the allegations of fraud against him.

We will leave you with a couple of quotes from Mr Prakash Chandran and KPMG's Mohamad Raslan, which gives some hope, even though PEMANDU has not learned that it is a bad idea to appoint PwC Malaysia for any jobs involving reform and economic transformation, until the fraud allegations against them are addressed, as that is like the fox guarding the chicken coop, or to set the wolf to guard the sheep.

Prakash Chandran : In business, the decisions of a few to act unethically and illegally can destroy the lives of thousands of honest, hardworking employees.

Mohamad Raslan: The pledge sets the right tone at the top for ethical behaviour and serves to instill the right corporate culture.

Why PwC Malaysia cannot ratify PEMANDU's Corporate Integrity Pledge

PRIVATE firms have been recognised by Pemandu for their support of the Corporate Integrity Pledge. The pledge has been ratified by Top Glove Corp Bhd, Siemens Malaysia Sdn Bhd and backed by KPMG. ~ The Star

Tan Sri Dato' Azman bin Hj Mokhtar is the Managing Director of Khazanah  Nasional, and also sits on the board of trustees for PEMANDU 

Khazanah Nasional Plans To Sell Pantai Medivest And Pantai Fomema

04/9/2011

Khazanah Nasional Berhad is planning to Pantai Medivest Sdn. Bhd. and Pantai Fomema & Systems Sdn Bhd, valued at around MYR 150 million, to focus on its core healthcare services business. Khazanah is believed to have appointed PricewaterhouseCoopers to manage the sale of Pantai Medivest and Pantai Fomema. "We are in the process of disposing it. We are in talks with a few parties," said a Khazanah spokesperson. He declined to name the interested parties. ~ Businessweek

Tan Sri Azman, as the Managing Director of Khazanah Nasional Berhad, we must first of all congratulate you and your team for generating a total return of 39.4% for 2010, and outperforming even the KLCI.

But we have a simple request at this juncture. Seeing that PricewaterhouseCoopers has a habit of being appointed by both PEMANDU and Khazanah Nasional, two important bodies in which you hold very important positions, can we request that you inquire of Mr Chin Kwai Fatt, The MD of PricewaterhouseCoopers Malaysia, why he cannot get his firm, to ratify the Corporate Integrity Pledge released by PEMANDU?

We are rather perplexed that PricewaterhouseCoopers is not backing this pledge, especially considering that they do numerous audit related and non audit related jobs for PEMANDU, the GLC's and a number major corporations, many of which Khazanah Nasional is a shareholder in.

And considering that Khazanah Nasional has recently appointed PwC Malaysia to manage the sale of Pantai Medivest and Pantai Fomema, it would look rather odd that the largest audit firm in the country is not a party to something as crucial to the fight against fraud and corruption as the Corporate Integrity Pledge.

Chin Kwai Fatt, the MD of PwC Malaysia. Has not signed any report against this blog with the MCMC or the Malaysian Police. Has also not backed the Corporate Integrity Pledge by PEMANDU.

Another factor that makes us wonder why Chin Kwai Fatt and PwC have not backed the Corporate Integrity Pledge is because we know that Mr Chin Kwai Fatt had absolutely no problem at all in signing a false declaration in 2008. That being the case, what is stopping him and his firm in backing this pledge?

If the worry is that a firm like PwC Malaysia, which has so many allegations of fraud hanging over the heads of some of its senior partners like Chin Kwai Fatt, will look hypocritical if it signs a pledge as clear on its stance against fraud and graft as the Corporate Integrity Pledge, then we must ask why they are still being appointed to jobs which we hope do require a great measure of integrity and high ethical standards?

Tan Sri Azman Mokhtar, please understand our concern as there is only one Khazanah Nasional and one PEMANDU, but there are numerous alternatives out there to PwC Malaysia, which do not come with the taint of fraud and other low things.