KUALA LUMPUR (April 29): Pasdec Holdings Bhd's external auditors have issued a qualified opinion on the company’s audited financial statements for the financial year ended Dec 31, 2015 (FY15).
This came after the external auditors Messrs Hanafiah Raslan & Mohamad were unable to ascertain the financial implications of an unauthorised mining activity carried on Pasdec's subsidiary land in Pahang.
"(An) unauthorised mining activity was carried out on land belonging to a subsidiary, Pasdec Corporation Sdn Bhd. Management is still in the process of determining the legal and financial implications of the matter, if any, to the subsidiary and the group," the auditors said in its report to Pasdec that was filed on Bursa Malaysia today.
Consequently, the auditors said they were unable to determine whether any adjustment arising from this matter is necessary.
Except for that, the auditors are satisfied that the financial statements of the subsidiaries that have been consolidated with the financial statements of the company, "are in form and content appropriate and proper for the purposes of the preparation of the consolidated financial statements".
The report added that they have received satisfactory information and explanations required by them for those purposes.
As such, except for the possible effects of the matter which led to the qualified opinion, it is of the view that the financial statements give a true and fair view of the financial position of the group as at Dec 31, 2015, and complies with Financial Reporting Standards.
Yesterday, the property developer announced that its group managing director Datuk Mohd Khairuddin Abdul Manan has been given a temporary leave of absence starting today, amid a probe into possible mining-related corruption.
It said Khairuddin volunteered to take leave during a board meeting held on Monday, in order to facilitate the completion of the ongoing forensic review by Deloitte Corporate Solutions Sdn Bhd.
Pasdec is 51.6%-owned by Pahang State Development Corp (PKNP).
It appointed Deloitte after learning from the newspapers and the Malaysian Anti-Corruption Commission’s (MACC) investigation that mining activity has been carried out on a land belonging to a subsidiary, Pasdec Corp.
Pasdec said the board had also appointed law firm Bastian Vendargon to advise it on the legal implications of the findings of the forensic review and on legal avenues to protect the company’s interests.
"The company will continue its business as usual, during Khairuddin’s absence," it said.
In the interim, Pasdec's non-executive director Datuk Abdul Rahim Mohd Ali, who is also PKNP chief executive officer, would perform the functions of managing director until otherwise resolved.
As at 2.11pm today, Pasdec was trading at 33 sen, up one sen or 3.12%, with a market value of RM67.97 million.
PASDEC (6912) - Pasdec's auditor issues qualified opinion on its FY15 financial statement
http://www.theedgemarkets.com/my/article/pasdecs-auditor-issues-qualified-opinion-its-fy15-financial-statement
