Proton Holdings Bhd our national car maker on September 2 2005 earlier assigned PricewaterhouseCoopers(PWC) to conduct a review on its affairs since 1996 so as to have a better insight of the company’s operations.

From PWC’s report, Proton Holding’s Managing Direct, Syed Zainal Abidin Systed Mohamed Tahir states that:

• some projects that were implemented without proper consultation or consent;
• billions of ringgit in expenditure was spent without in-depth discussion and that the previous board was unaware of certain legal problems the firm faced;
• about some incidences of poor corporate governance in its affairs from 1996 which involved the needs to put the systems in place such as improving its internal control mechanism, state clearly defined limits of authority, ensure accountability, better governance and decision-making structures.

Interestingly, Proton did not say in its statement whether it would investigate any of the previous lapses in corporate governance or take legal action against those involved.

However, its chief executive officer Abdul Wahab Jaafar Sidek said a thorough study will be made and persons responsible be identified before the matter is brought to courts.

He further emphasized that whoever is responsible must be identified and should include the external auditors (during the previous management’s time).

 He stressed that he is not stating that the external auditors are wrong, but they at least should  have raised the said issues earlier.
(The Business Time 1/8/06)