KUALA LUMPUR: UHY, a top-ranking international audit, tax and corporate advisory practice, hopes to complete the audit investigation on Kenmark Industrial Co (M) Bhd in two to three months.
UHY senior partner in Malaysia, Alvin Tee, said on Thursday, July 1 UHY was recently appointed special auditor of Kenmark under a directive from Bursa Malaysia.
"We are conducting an investigative audit to determine if there have been any accounting irregularities, potential breaches of rules and regulations that contributed to the RM150 million in losses," Tee said.
"We are also determining if there are any further losses that the new management has to deal with," he said at a press conference to introduce UHY forensic, litigation and valuation services in Malaysia.
Tee said the scope of examination will cover the past five years and special attention will be given to cross-border and related party transactions.
Reports on the recent disappearance of Kenmark managing director James Hwang Ding Kuo and other top management figures, coupled with sudden changes in shareholdings, have dominated business headlines over the past few weeks.
According to Tee, this was not the first time that Malaysia has seen top management of public-listed companies absconding from their businesses and obligations.
Interestingly, he said, all these companies, including Kenmark, were under Taiwanese management.
Asked to elaborate, Tee said "the investigative audit is underway so we can only comment on any findings at a future date, provided this is allowed for release to the public".
"However, what I can say is that the relaxation of exchange controls by Bank Negara Malaysia five years ago allows for far greater mobility of assets and funds than ever before. Unfortunately, some utilise this for improper transactions," he said.
Tee said potential investors, bankers and suppliers should exercise greater caution when dealing with cross-border deals and transactions.
He said some of his partners at UHY have served as bank examiners at Bank Negara Malaysia and as former regulators themselves, they will be focused over the next few weeks on using their investigative expertise to find out what brought about the Kenmark debacle.
UHY, formerly known as UHY Diong, currently handles 10 PN17 companies, out of a total of 37 in the country. UHY in Malaysia offices are currently located in Penang, Kuala Lumpur and Johor Baharu.
At the international level, UHY has presence in 242 major business centres in over 76 countries.
UHY International chairman John Wolfgang, who is also managing director of UHY Advisors in the United States, pledged to support the Malaysian forensic, litigation and valuation services division through the sharing of expertise, sophisticated methodologies and technologies.
"Our US offices handle major corporate debacles like Enron, conducting extremely sophisticated forensic, legal and valuation work," he said during the press conference. - Bernama
UHY senior partner in Malaysia, Alvin Tee, said on Thursday, July 1 UHY was recently appointed special auditor of Kenmark under a directive from Bursa Malaysia.
"We are conducting an investigative audit to determine if there have been any accounting irregularities, potential breaches of rules and regulations that contributed to the RM150 million in losses," Tee said.
"We are also determining if there are any further losses that the new management has to deal with," he said at a press conference to introduce UHY forensic, litigation and valuation services in Malaysia.
Tee said the scope of examination will cover the past five years and special attention will be given to cross-border and related party transactions.
Reports on the recent disappearance of Kenmark managing director James Hwang Ding Kuo and other top management figures, coupled with sudden changes in shareholdings, have dominated business headlines over the past few weeks.
According to Tee, this was not the first time that Malaysia has seen top management of public-listed companies absconding from their businesses and obligations.
Interestingly, he said, all these companies, including Kenmark, were under Taiwanese management.
Asked to elaborate, Tee said "the investigative audit is underway so we can only comment on any findings at a future date, provided this is allowed for release to the public".
"However, what I can say is that the relaxation of exchange controls by Bank Negara Malaysia five years ago allows for far greater mobility of assets and funds than ever before. Unfortunately, some utilise this for improper transactions," he said.
Tee said potential investors, bankers and suppliers should exercise greater caution when dealing with cross-border deals and transactions.
He said some of his partners at UHY have served as bank examiners at Bank Negara Malaysia and as former regulators themselves, they will be focused over the next few weeks on using their investigative expertise to find out what brought about the Kenmark debacle.
UHY, formerly known as UHY Diong, currently handles 10 PN17 companies, out of a total of 37 in the country. UHY in Malaysia offices are currently located in Penang, Kuala Lumpur and Johor Baharu.
At the international level, UHY has presence in 242 major business centres in over 76 countries.
UHY International chairman John Wolfgang, who is also managing director of UHY Advisors in the United States, pledged to support the Malaysian forensic, litigation and valuation services division through the sharing of expertise, sophisticated methodologies and technologies.
"Our US offices handle major corporate debacles like Enron, conducting extremely sophisticated forensic, legal and valuation work," he said during the press conference. - Bernama
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