Malaysia’s ENRON – Bravo to SC but What About Others?

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Jul 12 2007
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In following up with the Malaysia’s Enron case, the Securities Commission has finally charged three key executives of Transmile Group Berhad (KLSE: TRANMIL, stock-code 7000) namely the founder and former CEO Gan Boon Aun, 46, together with ex-chief financial officer (CFO) Lo Chok Ping, 38, and ex-executive director Khiudin Mohamed, 50. Three of them are accused of providing “misleading statement” in the carrier’s quarterly report for the financial year ending Dec. 31, 2006.

All three opted to contest the charges at the Kuala Lumpur Sessions Court and they were released on bail pending a hearing set for January. They face a minimum fine of 1 million ringgit ($289,855) and/or up to 10 years in jail if convicted. The court imposed bail of 1 million ringgit ($289,900) on Gan, 500,000 ringgit on Khiudin and 300,000 ringgit on Lo. In addition, Khiudin and Lo were also required to surrender their passports. Gan and Khiudin resigned from their top posts last month, though Khiudin’s lawyer said his client remains an employee. It is not known when Lo left the firm.

Transmile, whose chairman is former MCA president (a component party of the current ruling government) and Transport Minister Ling Liong Sik, is controlled by Hong Kong-based Malaysian billionaire Robert Kuok. Other shareholders include U.S.-based investment bank JPMorgan Chase and state-owned postal company Pos Malaysia Bhd.

This is indeed good news as far as good corporate governance is concerned as it would serve as an example for others to think twice before committing the book-cooking in future. Nevertheless it’s yet to be seen if the guilty parties will be punished severely or let-off the hook with minor fines. Having said so, investors and public will surely keep their eyes and ears open waiting for the result of the trial. I hope Transmile will not be the final company to have the irresponsible and greedy top executives charged. Do the same to other chefs who had been cooking the accounting book not in millions but billions.

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fyi. they were accused by the SC without proof or evidence , and were charged while investigation is still going on, all because some head.. who is a female, can’t be a rasional leader just because it was one comment from the pm.

fyi again, sc will be sued for defamation, the real culprit is non other the cfo himself. owh yeah, the charge and arrest recently was really ridiculous. the SC’s lawyer ie the prosecuter was scolded by the judge on court.. because “SHE WASN’T PREPARED” and had loads of facts wrong. shame.

typical malaysians, never know head and tail of the story, never bother to know or to find out… but definitely enjoy good gossip coz their lives are just TOO boring. Sad.

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