Friday, June 12, 2009

PKFZ special task force

One observation that needs to be made in relation to the PKFZ "special task force set up to recommend to the government ways to correct the mistakes and pursue appropriate legal actions" is the inclusion of the two PwC officials.

Since PwC produced the special audit and made inferences and recommendations in a report submitted to PKA, PwC has taken a stand on record.

As such, the two PwC persons in the PKFZ special task force have an inherent conflict of interest in that they will be inclined to cling to the PwC report and defend it. At best, they should only be input resource participants, not full members of the task force.

Furthermore, what happens if they are drawn as parties to any litigation arising from the PwC report? Wouldn't their objectivity as members of the special task force be lost there and then? Would they defend themselves harder against allegations made against them compared with their obligations as members of the special task force.

This is something that needs to be examined if the PKFZ matter is to be dealt with without fear or favour.

Just to be sure, the observations here are purely on the fact that the special task force is intended to do specific matters, particularly, in anticipation of litigation. The two gentlemen from PwC are inestimable in their professional conduct. Of that, there is no doubt. But, saying that, does not cure the inherent conflict of interest that exists. That is why someone needs to address this issue.


donplaypuks® said...

Looks like everyone is covering his base by being included in some committee in this circus.

'A camel is a horse invented by a commmittee!'

In the end no one will be found guilty of anything while the lawyers, accountants, auditors and con-sultants would be riding off into the sunset with their sackloads of 'professional fees'.

Anonymous said...

Agreed..too many cooks better buy some sardines.

And the one most IMPORTANT information thats missing and no one seems to be asking for is "Whats the current market value of the PKFZ assets?"...we know that the investments to date is a lot of billions BUT if the market value of the assets is even more billions then that,we should give credit (and Tan Sris) to the parties involved.


donplaypuks® said...

The market value, as in all things saleable, is what a willing buyer would agree to pay in an arm's length transacttion.

Would you buy a stake in a quarter completed project where its future is in doubt with some many caveats on its title and lawsuits flying about?

Anonymous said...


I was referring to a market valuation done by a professional valuer...the risk elements will be factored in accordingly and will be reflected by the forced sale value.
Thats the first info that I guess will be in most people's minds >>what did we get for the monies we paid?