As an approving authority under the Act of Parliament, the Securities Commission Act 1993 seems to provide SC with the power to get away with 'murder.' This blogger faced this experience in the the pursuit of the ECM Libra-Avenue Asset scandal.
Insulated at the PACC inquiry by Chairman Dato Shahrir Samad, SC was relieved from thorough questioning. Subsequently, all authorities from the then KLSE, Ministry of Finance, Minister of Finance II, Advisers, Auditors, and others took refuge from SC's approval to justify their actions.
The long list of improprieties by SC, authorities, and crooks involved got away and the scandal covered up.
Then, in their pursuit of Dato Ishak Ismail in the Kenmark case, SC resorted to harrassing reporters. Again, provisions in the SC Act 1993 provide refuge for their unethical and improper decisions and actions.
Will the SC Act protect them from a lawsuit where SC did the impossible of registering an audit firm on the same day SC established the registration Board?
The Malaysian Reserve had this story yesterday:
SC caught in its own legal quagmireIf the court still provide refuge for SC on this, something must be done to review and amend the SC Act 1993.
by JASON NG
The Malaysian Reserve
November 22, 2010
The Securities Commission (SC) is being sued for allegedly being ultra vires in what appears to be the collateral damage of a dispute involving PricewaterhouseCoopers and an ex-financial analyst.
Ramesh Chelliah filed an application to Kuala Lumpur High Court seeking a declaration that the registration of PricewaterhouseCoopers, one of the world's largest audit firm, under SC's Audit Oversight Board (AOB) on April 1 this year was unlawful and illegal, according to documents seen by The Malaysian Reserve.
“The registration of PricewaterhouseCoopers on the very same day the AOB was established was a physical and legal impossibility,” Ramesh stated in his application for judicial review.
Under the Securities Commission Act, audit firms and individuals who are engaged by a “public-interest entities” to audit its financial statements on or after April 1, 2010 must be registered with the AOB.
“Should the court rule in favour of Ramesh, the broad implication is that all accounts audited by PricewaterhouseCoopers after April 1, 2010 will be rendered invalid and null,” said a person close to the case who declined to be identified..
PricewaterhouseCoopers declined to comment when contacted yesterday while calls to a SC spokesperson was not returned at press time.
Once application has been received, AOB requires “up to two weeks” to perform necessary assessment of the information that has been disclosed in the registration form, the SC stated on its website under frequently-asked questions section on the AOB.
“This assessment would also require the AOB to do background checks with the relevant regulatory authorities,” the SC added.
The affidavit filed by Ramesh stated that an SC official “implied that the application forms were given to PricewaterhouseCoopers before April 1, 2010, an act that is illegal by itself.”
Ramesh also alleged that there were no proper disclosure about his suit in the application form submitted by PricewaterhouseCoopers to the AOB.
Ramesh, a former financial analysts, had instituted a legal action against PricewaterhouseCoopers, its managing partner Chin Kwai Fatt and PricewaterhouseCoopers Consulting Sdn Bhd in March 2001 claiming “breach of contract, negligence and in the tort of negligence and conversion”.
However, in a twist of events, PricewaterhouseCoopers and its consulting branch have withdrawn all their appeals against Ramesh Chelliah as well as their application to strike out the suit by Ramesh on March 1 this year.
No authority should be so powerful that their every decisions and actions cannot be questioned, scrutinised, and legally challenged. This breeds abuse of power, conflict of interests, and corruption.
Remember of our revelations on improprieties and conflict of interests by SC Chairperson, Tan Sri Zarina and "wife", Dato Azizan?
There is still more in our sleeves.