Posted by Valerie NG, Year 3 undergrad at the School of Accountancy, Singapore Management University
Thousands at Huawei Came Forward in Push Against Fraud, Founder Says
By PAUL MOZUR and SHANSHAN WANG
JANUARY 22, 2015 9:07 AM January 22, 2015 9:07 am Comment
HONG KONG — In a rare media appearance, Ren Zhengfei, the founder of Huawei, the Chinese telecommunications equipment maker, said on Thursday that the company recently carried out a campaign aimed at cutting back fraud in the company. Mr. Ren said that 4,000 to 5,000 employees had come forward to admit to various improprieties as part of a “confess for leniency” program that the company set up last year, according to an interview that was streamed live from the annual meeting of the World Economic Forum in Davos, Switzerland. “The biggest enemy we’ve run into isn’t other people, it’s ourselves,” he said. As part of the program, Huawei told employees that it would be lenient with them if they came forward before Dec. 31 of last year to admit to any violations of company policy throughout their career, according to an employee who spoke on the condition of anonymity because the person was discussing company affairs without permission.
Violations admitted by the employees included small misdemeanors, fraudulent reporting of financial information to the company, and even bribery and corruption. Any cases uncovered after the deadline will be transferred directly to the Chinese authorities, according to the employee. Continue reading →
Posted by SEAH Hui Ting, Year 3 undergrad at the School of Accountancy, Singapore Management University
S&P to Pay Nearly $80 Million to Settle Fraud Cases
Standard & Poor’s, the credit rating agency blamed for helping inflate the subprime mortgage bubble, has settled accusations that it orchestrated a similar fraud years after the bubble burst. Continue reading →
Justice or economics?
5 January 2015
By Andrew Salmon
It’s that time of year again: The time of year to recover from lingering hangovers; to implement those pesky new year’s resolutions; and to, er, parole or pardon the depressingly long roster of corporate criminals. Voices have been rising in the ruling party and the administration for the president to exercise her right to grant paroles and/or pardons to these white-collar wrongdoers. And there are a lot of them ― almost a “Who’s Who” of Korea Inc’s elite.
Tycoons attending the boardroom behind bars include (deep breath): SK Group Chairman Chey Tae-won and his younger brother, both serving raps for embezzlement; CJ Group Chairman Lee Jae-hyun for embezzlement, breach of trust and tax evasion; LIG Group Chairman Koo Bong-sang, for defrauding investors; Tongyang Group Chairman Hyun Jae-hyun for a billion-dollar-plus fraud; Taekwang Group Chairman Lee Ho-jin for embezzlement and breach of trust; and ex-STX Chairman Kang Duk-soo, for embezzlement and accounting fraud. Continue reading →
Police arrest Kalimantan palm-oil tycoon Budiono Tan
12 January 2015
The Jakarta Post
The West Kalimantan Police have arrested palm-oil tycoon Budiono Tan, who allegedly misappropriated 1,535 land certificates of oil-palm farmers in Ketapang, West Kalimantan.
The businessman, who runs a plantation through PT Benua Indah Grup (BIG), was caught on Friday night in West Jakarta after being sought for five years. Continue reading →
Thailand: Prosecutors ‘did their best’
3 September 2012
Thai News Service
Section: General News – Attorney General Praphan Naikowit on August 30 rejected claims that his office had failed in its mission to locate and seek the extradition of Pin Chakkaphak, whose alleged massive siphoning-off of funds from his own business was seen as sparking the 1997 economic meltdown, The Nation reports. Praphan defended public prosecutors after it was disclosed that Pin has returned to Bangkok following the expiry of the 15-year statute of limitations in his case. The Bank of Thailand accused Pin of collaborating with two others to embezzle Bt2.127 billion from his Finance One Group in 1996-97. Continue reading →
The Struggle to Simplify Accounting: Companies just don’t want to give up the flexibility to manage financial reporting that’s provided by the complexity of accounting standards.
Edward W. Trott
January 22, 2015 | CFO.com | US
Complexity in accounting is sometimes necessary when the transaction or economic event is complex. Some measurements will always be complex when there is the lack of significant observable data with which to make an estimate.
But much of the current complexity in accounting standards is unnecessary. This excess complexity is usually supported by CFOs and other corporate preparers of financial statements (who would most benefit from simplification of the standards) because of a desire to avoid the effort to undergo major changes in accounting standards. Continue reading →