Will the SC take action on this ongoing PwC fraud?

ARCHIVES 2010

By admin-s On Dec 15, 2010

By Zarinah Paycut

In October of 2002, IBM Corp. acquired PwC Consulting, the worldwide consulting arm of PricewaterhouseCoopers LLP for US$3.5 billion. This is an enquiry into the white collar fraud of how PwC can remain the auditors for IBM in Malaysia when they have yet to dispose of PricewaterhouseCoopers Consulting Sdn Bhd to IBM, thereby vitiating the no-action position of the Securities and Exchange Commission, among other things.

In every other country the Consulting Arm of PwC was acquired by IBM Corp as a part of their Global Business Services division, but not in Malaysia…

This was a lock,stock and barrel acquisition, including all ongoing businesses, as well as assets and liabilities.

This is an open letter to Mr. Eric Ooi Lip Aun, Mr. Mohammad Faiz bin Mohammad Azmi and Mr Uthaya Kumar, all three gentlemen of PwC Malaysia, and CCed to Mr. Rama Nathan, the MD of IBM Malaysia.

Gentlemen, as the three of you are lobbying very hard to be the next Chairman of PwC Malaysia, we now throw down the gauntlet to you, and ask that you answer some vexing questions with regards to the misconduct of some of your fellow senior partners, as the following points will exhibit

1. In 2002 IBM Corp acquired PwC Consulting worldwide, which must include PricewaterhouseCoopers Consulting Sdn Bhd (464379-U), the consulting arm of PricewaterhouseCoopers in Malaysia.

2. As part of the condition given by the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ), in the letter from the Office of the Chief Accountant , failure to comply with any of the terms, representations or conditions enumerated in the letter will vitiate this no-action position.

3. How is it that Dato’ Ahmad Johan bin Mohammad Raslan and Lee Tuck Heng remain as shareholders of PricewaterhouseCoopers Consulting Sdn Bhd (464379-U),which should be under the Global Business Services division of IBM, when PricewaterhouseCoopers is the Auditor for IBM Malaysia Sdn Bhd?