News
REPORTED FINANCIAL IRREGULARITIES IN MP TECHNOLOGY RESOURCES BERHAD (or THE COMPANY)
8 September 2006
MSWG believes that when all is said and done, there is no getting away from the reported financial irregularities which may be fraudulent in nature over the several proposals under the reorganization plans of MP Technology Resources Berhad (or the Company, formerly known as Kelamas Industries Berhad) announced in 2005.
This is in reference to the Company’s announcement on 7 September 2006 to the market.
Put simply, we must not tolerate unethical practice and poor governance attributed to fraud, mismanagement and irrational exuberance of directors who are entrusted with public money to ensure a true and fair view of the company’s affairs.
Non-compliance with approved accounting standards for credible financial reporting can damage the integrity of the capital market. Directors and public listed companies must not forget that effective communication to shareholders and investors is the cornerstone in running a successful business. It not only enhances their credibility and competence but also allow directors and companies to show integrity for self-regulation.
How can directors and public listed companies boost or even enhance investor confidence if the question of their integrity is in doubt and suspicious in the eyes of stakeholders?
It is the view of MSWG that stricter enforcement is necessary against errant directors who have a penchant for indulging in improper accounting and financial irregularities. If such directors do not abide by the requirements to be ethical, sincere and holistic in their dealings for corporate proposals be it re-organisation, restructuring or consolidation, then stricter enforcement is the only effective way to deal with them. Only in this way, can the integrity of the capital market be maintained or even enhanced.
True and fair view of the company’s affairs arising from transactions in corporate proposals in the interest of the company and stakeholders as a whole is the rule rather than the exception to ensure that directors and companies not only provide reliable and accurate information but do so in accordance with the spirit of a true and fair view.
Abdul Wahab Jaafar Sidek
Chief Executive Officer
Minority Shareholder Watchdog Group (MSWG)
Dated: 8 September 2006
8 September 2006
MSWG believes that when all is said and done, there is no getting away from the reported financial irregularities which may be fraudulent in nature over the several proposals under the reorganization plans of MP Technology Resources Berhad (or the Company, formerly known as Kelamas Industries Berhad) announced in 2005.
This is in reference to the Company’s announcement on 7 September 2006 to the market.
Put simply, we must not tolerate unethical practice and poor governance attributed to fraud, mismanagement and irrational exuberance of directors who are entrusted with public money to ensure a true and fair view of the company’s affairs.
Non-compliance with approved accounting standards for credible financial reporting can damage the integrity of the capital market. Directors and public listed companies must not forget that effective communication to shareholders and investors is the cornerstone in running a successful business. It not only enhances their credibility and competence but also allow directors and companies to show integrity for self-regulation.
How can directors and public listed companies boost or even enhance investor confidence if the question of their integrity is in doubt and suspicious in the eyes of stakeholders?
It is the view of MSWG that stricter enforcement is necessary against errant directors who have a penchant for indulging in improper accounting and financial irregularities. If such directors do not abide by the requirements to be ethical, sincere and holistic in their dealings for corporate proposals be it re-organisation, restructuring or consolidation, then stricter enforcement is the only effective way to deal with them. Only in this way, can the integrity of the capital market be maintained or even enhanced.
True and fair view of the company’s affairs arising from transactions in corporate proposals in the interest of the company and stakeholders as a whole is the rule rather than the exception to ensure that directors and companies not only provide reliable and accurate information but do so in accordance with the spirit of a true and fair view.
Abdul Wahab Jaafar Sidek
Chief Executive Officer
Minority Shareholder Watchdog Group (MSWG)
Dated: 8 September 2006
