Who is administering Company Act and regulations now?

robertteh SG

Why is it difficult to prevent CEOs and their boards from creative accounting and malpractices?

Who are the people administering the Company Act? President? Minister for Finance?, Prime Minister? Senior Minister? Auditor General?, CAD? CPIB? Institute of Directors?, IRAS?

Millions have been lost regularly due to creative accounting of the type disclosed by NKF case. In fact before NKF, many shareholders and public have lost monies due to widespread company malpractices of one kind or another. Citizens need to have clear answers from our government who are protecting their monies in GLCs, Ministries and foreign investments in Souzhou, Russia and India etc?

These are hard-earned monies belonging to the public investors and the taxpayers. NKF may be just the tip of the iceberg. Until broad-based administrative controls incorporating independent panels are set in place, ministers and regulatory departments may be just ad hoc, afraid to stir hornet nests or wait for more NKF exposures and not doing enough to safeguard public interests.

dragg SG

CAO, informatics, ACCS and citiraya are good examples.

Archie_boy SG

I have a feeling the health minister had hinted that this bastard may get off lightly just for poor governmance. He said he would need to change the law to tighten it. I strongly believe the MOH has some responsibility to bear too.

Just hope that the CAD had dug up some concrete evidences to nail the son of a bitch. Strangely, inflating cost of dialysis and number of patients just amounted to misrepresentation. WTF! It should be CHEATING!!! Twisted Evil

diggo SG

Robert Teh,

http://www.acra.gov.sg//aboutus/knowus.html

should give u the answer.

IMHO, i think the question on why is it difficult to identify coporate misbehaviour is not appropriate.

The set-up of a company (with the Shareholders, directors, Non Executive directors, chairman, Board of directors, audit committee, renumeration commitee) is suffice as a check with each other function.

However, it is not the system... it is the ppl running the co. tat is the problem.

dragg SG

i feel durai is just of the many.

SilverPal SG

Totally agree with you... He is one of the many...

Maybe that's why coporate governance is to difficult. The bottomline of commerce is to maximise returns, and all who are involved in it want to maximise their own returns. Sadly, there are times where returns are maximised for them if they allow "some" mismanagement to occur. That's where the check and balance system breaks down.

That's where we get people "blackmailing" themselves for higher pay (ie If I pay me lower salary, I might turn corrupt or leave for a better job) and the "you scratch my back and I scratch yours" phenomenon (ie CEO increases shareholders' dividends while shareholders give CEO golden tap, 12 months bonus etc)

claudetnt SG

yes, TT durai is just the tip of the ice berg and soon its all going to hushed up or a small fry may be persecuted!

Salman SG

The system isn't the problem, its the people. Audits are not a cure all and only reflects consistency in accounting. If managers are out to cheat, they will cheat. You go to any private limited companies out there and see if there is no cheating.

BTW, sometimes its the auditing firms that are at fault themselves as is the case of Asian Paper and Pulp, US banks and Enron. Its stupid for them to cover up but if people choose to do stupid things, its impossible to prevent fraud.