Thursday, August 14, 2008


The Chief Minister of Penang announced that the Penang State Government has appointed external auditors to examine the financial positions of three state government bodies. The Star this morning reported that the Penang Municipal Council, the Seberang Perai Municipal Council and the Penang Development Corporation are the bodies mentioned by the Chief Minister that will be subjected to further examinations and diagnostic review of their financial affairs.

According to the paper, the examinations will be a two stage affair. The first stage will cover the preliminary financial due diligence while the second stage will involve the financial forensics.

This timely action taken should be applauded by the Rakyat. The public who has no access to the accounts of those bodies would definitely want to know and has the right to know the real financial situation since the amount of funds involved are huge.

Reliable sources indicated that Perak too would follow suit in appointing external auditors to conduct the financial due diligence of the state bodies including the state companies.

Apparently the Perak exercise involves the restructuring at the Board of Directors level and changes in management personnel too.

Anyway, abuses of facilities are still rampant by the directors of Perak state companies especially among the previous state government nominees who are still driving around in fancy state companies' cars for private use while enjoying big fat allowances and bonuses at the expense of shareholders.

Let's hope the financial due diligence exercise and restructuring of state bodies and state companies by Perak Government will be fast enough to address abuses and irregularities to restore financial sanity for the benefit of the Rakyat.

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