Friday, March 9, 2012

The Malaysian Insider - Will They Ever Learn?

In making a scoop of the the day of sorts, the Malaysian Insider reported, "Tajudin’s sis-in-law wins 36 months’ pay for resigning from Naluri"

What the headline and the report implies, is not only mischievous it's also another Mahathir tarnishing act.

I do not see what Tun Mahathir has anything to do with this suit.

Not to mention shoddy reporting -

"The court ruled in favour of Datin Rizana Mohamad Daud who claimed she was entitled to a sum worth RM1.47 million after quitting her position as head of legal and corporate secretarial on January 14 2005 with three months’ notice" then later on in the same report "According to the 2002 Naluri Berhad annual report Tajudin was the firm’s chairman at the time of Rizana’s resignation" 

In the Naluri Berhad Annual Report 2002, Datin Rizana is the Company Secretary.

The Naluri Berhad Annual Report 2003 still lists Datin Rizana as Company Secretary.
In December of 2002, the overall and complete management of Naluri was placed under Special Administratorship by Danaharta -
On 23 December 2002, Pengurusan Danaharta Nasional Berhad (“Danaharta”) appointed Mohamed Raslan Bin Abdul Rahman, Gan Ah Tee and Ooi Woon Chee of KPMG Corporate Services Sdn Bhd as Special Administrators (“SA”) of Naluri Berhad (“the Company”) pursuant to the Pengurusan Danaharta Nasional Berhad Act, 1998 (“Danaharta Act”) to manage the assets and affairs of the Company. With the appointment of the SA, all powers of Board of Directors and the management of the Company were suspended. The executive powers now rest with the SA and only the SA can deal with the assets and affairs of the Company.
In the 2004 Annual Report, the Special Administrators were discharged from duties -

On 18 December 2004, pursuant to Section 28 (2) of the Danaharta Act, the Special Administrators of the Company were released from their appointment. Accordingly, the Special Administration of the Company and the moratorium in respect of the Company were terminated on the same date.

The Board of Directors resumed its duties and responsibilities to manage the Company and the Group on 19 December 2004 (since the termination of the appointment of the SAs).
The relevance of mentioning the Special Administrators will be duly explained.

The TMI report not only impugns nepotism but in "Rizana who was appointed to the post on August 1 2002 had a monthly salary of RM20,000 despite having no legal qualifications", grave injudiciousness. 

Whatever the merit or demerit of the judgement, the clause “cessation of employment as head of legal and corporate secretarial for any reason whatsoever shall entitle you to a compensation”, works both ways, resignation or dismissal.

Going by the TMI report, Datin Rizana was appointed to the post on August 2002 and the SA appointed 4 months later.

With "executive powers now rest with the SA and only the SA can deal with the assets and affairs of the Company", it is fair to say that all appointment contracts involving positions of high office especially one as unfavourable as this, could not have escaped the SA. 

After all, the SA was there from 2002 till 2004. They could have saved Naluri a tidy sum as events have turned out.

Putting a question mark on Datin Rizana "having no legal qualifications", the Malaysian Insider is found wanting.

Anyone who knows anything about the corporate accounting world will recognise KPMG.

That KPMG allowed Datin Rizana to remain Company Secretary for the official 2002 and 2003 year end results, casts away any doubts about Datin Rizana qualified (not the accounting term) for the position.

When will The Malaysian Insider ever learn to provide a decent, balanced and accurate report?


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