STATUS ON COMPANIES COMMISSION OF MALAYSIA’S INSPECTION

Press Release: 27 July 2012
STATUS ON COMPANIES COMMISSION OF MALAYSIA’S INSPECTION
SUARAM has received Notices of Inspection pursuant to s7B(2) and s7(11)(a) of the Companies Act 1965 from the Companies Commission Malaysia (“CCM”) vide registered mail on the 6th July 2012. The said notices require directors, Dr. Kua Kia Soong and Dr. Yeoh Seng Guan to produce information and documents to the CCM on the 13th July 2012. For the interest of the public, a brief update on the status of inspection is summarized below.
 
On the 13th of July, 2012, SUARAM together with their lawyers were present at the CCM office. In view of the short notice and the need for clarification on the information and documents requested by CCM, we have applied for an extension of time to compile and furnish 4 year records for the CCM.
Our lawyers explained to the CCM that the information and documents set out in the notices to all parties are substantially similar and to facilitate the process, CCM should consolidate the notices. Fresh notices with similar content were served to Dr. Yeoh Seng Guan and our Finance Manager, Danapakiam Savari on even date at the CCM office. The earlier notices (3 attempts) to all parties were effectively cancelled by CCM.
On 20th July 2012, in compliance with the notices of inspection dated 13th July 2012 and CCM’s clarification on the requested information and documents vide letter dated 18th July 2012, we produced the following information and documents to the CCM:-
        i.            List of detailed information on administrative expenses for the year ended 2008-2011;
      ii.            List of detailed information on company’s business activities for the year ended 2008-2011;
    iii.            General ledger including Trial Balance and Chart of Accounts;
    iv.            Supporting documents related to income including letters, cheques, contracts, bank statements, receipts, invoices and Delivery Orders; and
      v.            Supporting documents related to expenses, including bank statements and staff listing.
SUARAM reiterates that it will comply with CCM’s request in accordance with the law and will only provide information and documents required under the Act. We wish to put on record that notwithstanding the information and documents requested may or may not fall beyond the requirements of the Act we have, nevertheless complied and provided the requested information and documents to the CCM on a best effort basis in view of the time constraint. We had also offered to cooperate, in accordance with the law, subject to a written request in the event the CCM requires further information and documents.
However, we wish to highlight our concern on the manner in which CCM officers performed their duties on both occasion i.e 13th and 20th July 2012. It is worrying when the Head of Compliance Unit made major decisions and/or instructions despite the fact that he had participated in the meeting and inspection long after it has begun without having prior background knowledge on what transpired at the meeting in his absence.
We stress that the entire orchestra by the government to harass SUARAM through a complaint by Jaringan Melayu Malaysia and CCM’s ‘routine’ inspection was political and uncalled for. We do not even know if the complaint was made official to the CCM.  It appears that the CCM is acting on every single complaint (offical or otherwise) from the public at a highly efficient rate. We question if the Standard Operating Procedure (“SOP”) provides guidelines on receiving and acting on a complaint. We also question whether or not the SOP requires the CCM to first verify the background of the complainant prior to receiving and acting on a complaint lest the CCM becomes the ultimate dissent control mechanism.
The CCM, instead of being an active participant in the government’s harassment campaign should perform a balancing exercise on its priorities to investigate highly dubious activities and accounts of Perimekar Sdn Bhd and Terasasi Sdn Bhd as investigated and addressed in the Paris Papers.
Lastly, SUARAM would like to express its gratitude to all who have been supportive throughout this ordeal.
Released by,
Nalini Elumalai
Executive Director
SUARAM

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