Say No To Hudud

Tuesday, February 1, 2011

MD of PwC Malaysia knowingly signed a false declaration: Here's the proof!

Here we will show with the relevant documents, how the MD of PwC Malaysia, Mr Chin Kwai Fatt knowingly signed a false declaration with regards to the firm known as PricewaterhouseCoopers Consulting Sdn Bhd (464379-U).

In this posting much earlier, we showed how the very existence of PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) is contentious, and that the company only exists to hide contingent liabilities and defraud its creditors.

The Malaysian Accounting Standards Board, MASB, under rule MASB 20, explains how to treat contingent liabilities in an enterprises balance sheet.

4. MASB 20 prohibits the recognition of contingent liabilities and assets. An enterprise should disclose a contingent liability, unless the possibility of an outflow of resources embodying economic benefits is remote, and discloses a contingent asset if an inflow of economic benefits is probable.

In the case of PricewaterhouseCoopers Consulting Sdn Bhd (464379-U), the possibility of the contingent liabilities, becoming a liability in the future is not remote, as the company is facing several lawsuits totaling several hundreds of millions of Ringgit, and has not applied to strike out these lawsuits.

Chin Kwai Fatt signs off for 2008, that, as at the date to which the income statement has been made up the company appeared to have been able to meet its liabilities as and when they fall due.

 This is a false statement because the company has not met its solvency test.

The Corporate Law Reform Committee, in its review of the Company Act 1965. states in Recommendation 3.9 that :

What Chin Kwai Fatt has done is state that PricewaterhouseCoopers Consulting Sdn Bhd (464379-U), can meet its liabilities as and when they fall due, when the firm has in fact ceased operations as of 2009, as we will show, which makes it fail the cash flow solvency. The company also fails its balance sheet solvency as it does not have assets approaching the amount of contingent liabilities that it is facing in its several lawsuits, let alone exceed the amount of contingent liabilities.

In a continuous series of actions to defraud its creditors, the company known as PricewaterhouseCoopers Consulting Sdn Bhd (464379-U), under the stewardship of the MD of PwC Malaysia Chin Kwai Fatt, has not only attempted to hide the contingent liabilities from the sale made to IBM Corp back in 2002 of PwC's  global consulting arm, but Chin Kwai Fatt has also knowingly signed false declarations attesting to the ability of PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) to meet its contingent liabilities without it meeting its solvency tests as required. For a premier audit firm such as PwC to have its senior partners stoop to such blatantly criminal acts is shocking to say the least.

to be continued Part 2 SSM Practice Note 1/2008

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