Jul 31, 2006

The Audit Report is Out : The MAIN problem with PROTON is of poor management

The MAIN problem with PROTON is of poor management?.

Excerpt from ChannelNewsAsia:
KUALA LUMPUR : An audit report commissioned by Malaysia's national carmaker Proton has criticised poor corporate governance in the past at the troubled company, local media said Sunday.

The Edge financial weekly cited a comprehensive report from PricewaterhouseCoopers which it said revealed, among other findings, that approval from the board of directors was only sought after decisions had been made or agreements signed by management.

According to The Edge, the PricewaterhouseCoopers report says some projects were implemented without proper consultation and billions of ringgit was spent without in-depth discussions.

The audit firm started preparing the report for the present Proton management in September last year, with the findings going as far back as 1996.

Mahaleel Ariff was Proton's chief executive from 1997 until he was ousted in July last year.

He oversaw the purchase of debt-ridden motorcycle maker Agusta for 70 million euro (now $89.6m) in 2004. After his departure, Proton sold Agusta to Italy's Gevi SPA for a token sum of one euro.

Mahaleel and Proton advisor and former prime minister Mahathir Mohamad have strongly criticised the Agusta sale, demanding information on why it went ahead and saying their credibility is at stake over the deal.

Mahaleel could not be reached for comment. - AFP /dt

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iM D eNigMa said...

What else is new?! Tell me? That's why 'tehy' came up with the phrase, Malaysia Boleh! Look at the string of failures all throughout our history! Incompetent leaders! We're doomed! MAS, Proton... etc... any GLC companies... Almost everything that the government has touched or is going to touch will spell disaster!

mob1900 said...

The clear and present danger is, it's going to continue to bleed us and deprieve us from other quality products. Don't get me wrong, I relish the idea of giving opportunities and preping our countrymen with adequate knowledge to survive in the competitive car industry but after more than 20 years, we are no longer able to sustain and protect this national company from dealing with reality.

It's either sink or swim.

gigigeraham said...

Auditing has its purpose. It would be interesting to know the term of reference on this auditing. In most cases it has been fault finding exercise. But whatever, auditing is not free, and pay is big! Have you heard of adjusted accounts prepared by hired accountants before companies filed it up to Income Tax Office? But again, as i would imagine this battle is long and tough. We just have to be sensible and sane.