MCA central committee member Chua Tee Yong's response to the audit report on the Talam debt restructuring exercise implies that international audit firm KPMG had committed "audit fraud”, said Petaling Jaya Utara MP Tony Pua.
Speaking to reporters today, Pua (left) said that Chua had insinuated this in his tweet when he brought up the Enron scandal in relation to KPMG's audit of the Talam matter.
"He is now clearly insinuating that KPMG is not competent in its audit exercise and has taken part in audit fraud by comparing the Talam audit to the mega Enron audit scandal in the United States," he said.
Chua had, in an immediate response to the KPMG audit findings, said that, "Enron and a lot (other) cases show that (an) audit and its results are limited to the documents available”.
Enron was a US energy giant at the heart of a scandal which led to the dissolution of major audit firm Arthur Andersen for failing to uncover billions of debts and failed projects hidden by executives through accounting loopholes.
Speaking to reporters today, Pua (left) said that Chua had insinuated this in his tweet when he brought up the Enron scandal in relation to KPMG's audit of the Talam matter."He is now clearly insinuating that KPMG is not competent in its audit exercise and has taken part in audit fraud by comparing the Talam audit to the mega Enron audit scandal in the United States," he said.
Chua had, in an immediate response to the KPMG audit findings, said that, "Enron and a lot (other) cases show that (an) audit and its results are limited to the documents available”.
Enron was a US energy giant at the heart of a scandal which led to the dissolution of major audit firm Arthur Andersen for failing to uncover billions of debts and failed projects hidden by executives through accounting loopholes.
Selangor Menteri Besar Abdul Khalid Ibrahim had announced yesterday that auditors at KPMG found that the state made a "sound commercial decision".
According to auditor Chan Siew Mei, who was present during the MB's announcement, the scope of the audit was "strictly to check on transactions and supporting documents".
"“It was not to see if allegations (against the state) were true or not,” she had said.
MCA alleges that the state had bailed out ailing company Talam Corporation in a scandal involving up to RM1 billion.
MCA also questioned the value of the assets used by Talam to offset its debt to the state.
According to auditor Chan Siew Mei, who was present during the MB's announcement, the scope of the audit was "strictly to check on transactions and supporting documents".
"“It was not to see if allegations (against the state) were true or not,” she had said.
MCA alleges that the state had bailed out ailing company Talam Corporation in a scandal involving up to RM1 billion.
MCA also questioned the value of the assets used by Talam to offset its debt to the state.
Was Multipurpose Holdings purchase questioned?
Commenting on this, PKR's Selayang MP William Leong said if Chua is so concerned about valuations, he should answer why MCA did not seek a valuation report when it purchased Menara Multipurpose for RM375 million from Multipurpose Holdings Bhd last year.
"I ask Chua, for the sake of MCA members...Multipurpose made a gain of RM175 million. Why didn't MCA and Chua ask for a valuation report?
"The only valuation report was produced by Multipurpose in April 2011 for the purpose of obtaining a loan," he said.
Commenting on this, PKR's Selayang MP William Leong said if Chua is so concerned about valuations, he should answer why MCA did not seek a valuation report when it purchased Menara Multipurpose for RM375 million from Multipurpose Holdings Bhd last year. "I ask Chua, for the sake of MCA members...Multipurpose made a gain of RM175 million. Why didn't MCA and Chua ask for a valuation report?
"The only valuation report was produced by Multipurpose in April 2011 for the purpose of obtaining a loan," he said.
According to a report by The Star last September, the office tower's net book value, according to Multipurpose Holdings Bhd's audited financial statements as of Dec 31, 2010 was RM175.4 million.
"However, a valuation by Henry Butcher Malaysia Sdn Bhd on April 20 (2011) deemed the office tower and car park bays to have a market value of RM384 million," the daily reported.
"However, a valuation by Henry Butcher Malaysia Sdn Bhd on April 20 (2011) deemed the office tower and car park bays to have a market value of RM384 million," the daily reported.
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