Tuesday, June 16, 2015

More Nazir's shit for Zafrul to clean?

In our January 2011 posting [read here], this blog raised issue of Air Asia's manipulative accounting treatment. In an August 2013 posting [read here]. mentioned in passing that "They adulterated the accounting policy to boost up revenue and profit and loss."

Many postings on Dato Nazir in relation to his involvement in MAS would mention that he is more interested to save CIMB's big expose in Air Asia. A Reuters report on Friday questioned Air Asia's creative accounting to artificially boost their revenue.

It means CIMB could be in for trouble. They may have bought into Air Asia's allegedly falsified profit and loss and cashflow statement. Nazir had his judgement clouded by his friendship to Tan Sri Tony Fernandez.

Read also previous postings on Nazir here and here.

Something need to be clear. This blog do not criticise Nazir merely for being vocal on 1MDB. This blog have been criticising him on many of his deals and exploits.

To label us as pro-Najib, that is shallow politics. This blogger is cause-based or issue-based, but no way personality based. Never do we subscribe to feudelistic blind loyalty. Never!

Returning to the subject, Wee Choo Keong posting yesterday [read here] provided more material on Air Asia's alleged questionable accounting practises. Last Friday's Reuter's report:
Industries | Fri Jun 12, 2015 7:32am EDT
Related: Industrials

GMT Research report questions AirAsia accounting practices

KUALA LUMPUR, June 12 | By Yantoultra Ngui

Hong Kong-based GMT Research has issued a report questioning airline AirAsia Bhd's accounting practices, accusing it of using transactions with associate companies to boost its earnings, according to a copy obtained by Reuters.

The report was issued on June 10 to GMT's subscribers and since then shares in the low-cost carrier have lost 14 percent or 812 million ringgit ($215 million) in market value.

"We are in discussions with the company about our concerns," GMT's founder Gillem Tulloch said in a statement on the research house's website.

An official for AirAsia did not immediately respond to a Reuters request for comment.

Maybank analyst Mohshin Aziz said in a note to clients on Friday that while the airline's shares had been hit by an independent report accusing it of accounting anomalies, he was maintaining his "buy" call on the stock.

"We believe AirAsia's accounts are transparent," Mohshin said in the note. "The auditors have approved the latest 2014 accounts without any qualification."

A spokeswoman for PwC, the company's auditor, declined to comment, citing client confidentiality.

AirAsia's stock fell as low as 1.73 ringgit on Friday, a five-year low. By contrast, Maybank has a price target of 2.45 ringgit on the stock.

Shares in AirAsia X, the long-haul arm of AirAsia, have also fallen, declining 8 percent since June 9.

Tony Fernandes, an outspoken Malaysian entrepreneur, founded AirAsia in 2001 with two aircraft and it has since helped to usher in an age of low-cost air travel in Asia.

Its fleet has grown to 171 Airbus jets serving destinations in Thailand, Indonesia, the Philippines and India. At one point, it placed orders for almost 500 jets.

Rivals including Jetstar Asia, Tiger Airways and Lion Air have stepped up their capacity, creating oversupply in a very competitive market.

GMT, which says it is not a short seller but an accounting research firm licensed by Hong Kong's Securities and Futures Commission, said on its website that it has a press embargo on the report until June 24.

It previously issued a report on Singapore commodities trader Noble Group Ltd, adding to damaging criticism led by little known research firm Iceberg. ($1 = 3.7580 ringgit) (Reporting by Yantoultra Ngui; Editing by Edwina Gibbs)
GMT Research press statement here.

Could Tony F trying to divert attention from another of his many problems? Or he wants government to be concern for citizen Tony F?

It only means more shit for Dato Tengku Zafrul to clean up. Expect the continuously changing job Zafrul to move on yet again.


Anonymous said...

For too long - beginning with brader Juburi - this economic chicanery of the elites have been fooling the rakyat with their rather accomplished grasp of the English rhetoric.

Anonymous said...

AirAsia CEO Aireen Omar buys shares after critical report - http://www.themalaysianinsider.com/business/article/airasia-ceo-aireen-omar-buys-shares-after-critical-report

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