Tuesday, June 17, 2008

Petronas Accounts - For Once I Agree With Khairy

Petronas should publish a more detailed financial statement and then table it in Parliament so that there is greater transparency, said Rembau MP and deputy Umno youth chief Khairy Jamaluddin.

“The call that I made for Petronas to disclose its financial statement goes above and beyond the annual report that is published on its website. I believe most MPs are aware of Petronas’ published financial accounts.

"However, the annual report only highlights a summary of Petronas’ financial position without going into any detail.

"While I appreciate that the standard of the annual report surpasses the requirements of the Companies Commission of Malaysia, I think it is also fair to say that Petronas is not an ordinary corporation," he said in a statement.

He was responding to a report in The Star on Tuesday quoting Petronas acting chairman, president and chief executive officer Tan Sri Mohd Hassan Marican as saying that the corporation’s account had been published and made public for the past 18 years. Hassan said 5,000 copies of the report was printed and distributed to various quarters and it was also available on Petronas' website.

Khairy said Petronas had been tasked with safeguarding the nation’s most important natural resource on behalf of the people and, "therefore, should be held to a higher level of scrutiny.

He claimed that the summarised financial figures found in Petronas’s annual report did not meet this higher level of scrutiny.

"I would suggest that Petronas commits itself to greater transparency and accountability by agreeing to give a special briefing to all MPs on the company’s corporate activities and financial position, and open the briefing to questions from the floor.

"This would provide the MPs, and therefore the public at large, with a more meaningful insight into Petronas apart from the financial summaries that are currently available to the public,” Khairy added.

In Penang, Chief Minister and DAP secretary-general Lim Guan Eng said Petronas should give details on how it spends its earnings, including money used for purchases of planes.

He said Petronas should explain to the people how it spent money on sponsorship programmes and charity as well as reveal the number of luxury cars and jets it owns.

“The online annual report is insufficient as we need to know more than the number of oil barrels Petronas produced in a day,” he said after opening Axon’s new Penang office here on Tuesday.

“In hard economic times, we expect Petronas to play a role in easing the burden on the people,” he said. (The Star)

Petronas acting chairman, president and chief executive officer Tan Sri Mohd Hassan Marican thought he could bullshit his way out of this situation by saying that the corporation’s account 'had been published and made public'. But alas there seems to be much, much more to the story than what he's letting on. Hopefully over the next few days we can get to see some real, unedited figures which will tell their own sordid tales of avarice and abuse of power.
Image - Source

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Blogger MANTRA said...

Dont be flattered by Khairy's political gimmicks. It is not Petronas Accounts that should be published but we should ask Khairy or Khairy should ask the Prime Minister : WHERE IS THE TAX MONEY PAID BY PETRONAS. HOW THE GOVERNMENT SPEND PETRONAS TAX MONEY?

Read my blog for further explanations: http://mantra-indeeptots.blogspot.com/

10:28 PM GMT+8  
Anonymous Anonymous said...

As a chartered accountant, I am absolutely disgusted by the comment made by Mr. Hassan. He is an ACA (ICAEW-UK) accountant. The comments he made is absolutely ridiculous. He was a former partner of Hanafiah Raslan dan Mohamamad (ex Arthur Andersen and now Ernst and Young).

A trained accountant would know that corporate reporting includes reporting on financial, societal and environmental. The summary of financial performance gives no indication of good governance.

Furthermore, there is no notes on accounting policies adopted and detail disclosures. There was no report from Audit Committee, Remuneration Committee, Nomination Committion, Risk Committee, etc.

Mr. Hassan, if you think you can deceive the Malaysian public, I think you are wrong. Well Mamak Mahathir placed Mamak Hasan Merican in this position. Looks like all the Mamaks are going to rob the country.

We don't even have detail disclosures. Please look at your competitors e.g PetroBras,Exxon Mobil, Shell, BP, etc. They have better triple bottom line reporting.

You bring all the HRM cronies. Bloody hell. To hell with you. You disgust the ACA and MIA fraternity.

3:18 AM GMT+8  
Anonymous chartered as well said...

mr anonymous,

the report that u can obtain from the website is the summarised version. for a more detailed version (the one which is comparable to those published by Shell, Exxon etc), please visit the ROC and obtain from there. don't be a lazy bum n don't talk shit abt our tan sri

8:21 AM GMT+8  
Anonymous Anonymous said...

Come on lah...let's be honest! petronas will not disclose its Audited Accounts. The Millions & Millions spent on Orchasteras, F1 & Bail-outs & God only knows whatelse!
The BN will NEVER allow these books to be opened to the public.
We MUST change our life style. WE not them!
JUst look at how the Petronas Bosses live!

1:31 PM GMT+8  
Anonymous Anonymous said...

Why is PETRONAS disclose its entire account? Because KJ and LGE said so? Who are this people? They are just MPs? If MPs now wanting to learn and understand business should they focus on other less efficient and less profitable companies i.e. Tenaga, Telekom, Maybank etc.

Please don't hide under the guise of rakyat needs to know. For if this is true, then I want to know where does UMNO or DAP or PKR gets its fundings for their political activities. Some quarters says PKR got its USD 200M form the US. Is this true? DAP who has no financial backers, how did they survive? Any funders from foreign sympathisers?

Please reveal all. THE RAKYAT DEMANDS TO KNOW. I have never seen an audited account of UMNO, PKR or DAP. You want to talk about setting role model? You are the one that needs to it first.

8:05 PM GMT+8  
Anonymous Anonymous said...

Anonymous 8:05PM...of course the Rakyat has a right to know where Petronas is spending its money! The Oil & Gas that they sell belongs to all Malaysians not to Petronas!
It's because of IDIOTS like you that Petronas & the BN have been allowed to "waste" our Natural Resources on Orchasteras, F1 & nonperforming GLCs!

8:47 PM GMT+8  
Anonymous Anonymous said...

Well Mr. Chartered as Well,

You defend a lame duck. His statements were misleading. He said he publishes the results. It is correct but the information presented in not enough. If you are really chartered, you would know that. Profit could be cash profit and non-cash profit. God knows what type of disclosures they have. The other oil giants have their full annual report in their website. Why can't Petronas do that? Well, it is simple. Secrecy.

Mr. Chartered as Well, Malaysians are no longer dungu. We are learned and we know what we are talking about. Your mamak Tan Sri is a conman. Just like Mr. Mahathir.

Furthermore, he doesn't disclose the remuneration of the top people. You go to ROC,also you won't get. Don't talk bullshit. There top executives of Petronas earn millions of ringgit.

10:07 PM GMT+8  
Anonymous chartered as well said...

mr anonymous,

PETRONAS is not a listed companies (SHELL and BP are), hence there is no reason for it to publish its full audited FS.
However, we are obliged under the companies act and the petroleum act to submit the full audited FS to the ROC and parliament respectively. we also have external loans obtained from various banks, which means we have to submit to them the duly audited full FS, come the year end. As a conclusion, secrecy is NO ISSUE at all.

Talk anything u like abt TS Hassan, but make sure u've the facts right in front of ur eyes. knowledge n facts differentiate btwn a dungu msian n a learned one.

millions of ringgit? i can ensure u that is not true.

as a conclusion, please go n see ur fav MP and ask him/her to show u the full audited FS. it's available in the parliament's library.


8:16 AM GMT+8  
Anonymous chartered as well said...

"PETRONAS is not a listed company

pls pardon my grammar :)

8:27 AM GMT+8  
Anonymous Anonymous said...

Whatever lah...just because Pertonas is not a listed company does not mean that it should not be "transparent".
Oooopssss...I forgot...you have Petronas & BN in the same boat...forget the transparency.
Tan Sri is just following what his "boss" (Pak Lah) is telling him to do (i.e. hoodwink the Rakyat more! They are too stupid to know better)!

3:54 PM GMT+8  
Anonymous Anonymous said...

I say boycott Petronas!!!!!
Since they don't have any problems "wasting" money, then they don't need our hard earned cash either!

3:55 PM GMT+8  
Anonymous chartered as well said...

Yes, do what u like. i've no ctrl over your personal money

We're also working very hard, risking our life day n nights, onshore and offshore, to make sure that we contribute as much div+tax+royalties as possible to the govt. What happens after that i.e. how the money is utilised is totally beyond us.

IF, by all means PETRONAS is “wasting” money on F1 etc, then we’ve created huge profit as the result of the “wastage” i.e. huge increase in the sale of lubricants worldwide, lower financing costs as a result of improved ratings (as a result of healthier recognition by the financial institutions worldwide) and many more lah. F1 (among others) has resulted in us being recognized in the O&G industry.

But seriously dude, ur arguments doesn't hold water.

Knowledge n facts differentiate btwn a dungu msian n a learned one-->remember?

Hv a nice day “learned” man. Don’t be as shallow as most of the politicians, be it from the ruling govt or the opposition. There’s always a political motive behind everything they said.


5:20 PM GMT+8  
Anonymous Anonymous said...

Wow...huge increase in lubricant sales worldwide because of F1? Where on earth did you get that? In your dreams lah! What about the Millions wasted on the Petronas Orchastera?
What about the Millions also spent in hiring fireigners in Petronas when there are equally (if not better) qualified Malaysians who can do the jobs just as well or if not better?!
Talk about arguments not holding water?!

9:03 AM GMT+8  
Anonymous Anonymous said...

"Chartered" ... how they utilize the money is not totally beyond us. It is beyond us only if we "keep quiet" & resign ourselves to allowing them (i.e. Petronas & the Government) to use the money for their own selfish wasteful reasons.

10:13 AM GMT+8  
Anonymous chartered as well said...

Because i work in the Finance Division of Petronas la bro. Again, pls read the full audited FS for the details. i hope you are able to perform a year-to year comparison.

I don't have the official no of foreigners working in Petronas. Perhaps u can check with the HR Dept b4 making such accusations? FY kind info, we're facing a shortage of competent geoscientists and petroleum engineers in Petronas, because:
1)Msia doesn't have THAT much petroleum engineers
2)many have left for middle eastern companies for far more better pay

Much of the so called "wastage" was spent to enhance our brand presence in the world, which has contributed to the increased in the overseas revenue of Petronas. FY kind info, overseas revenue constitutes to abt 30-35% of our total revenue, today.

10:15 AM GMT+8  
Anonymous chartered as well said...


10:17 AM GMT+8  
Anonymous Anonymous said...

Ahhhh...I guessed so Chartered...those of you in the Finance Dept. are happy to sign "fat" cheques for Foreigners but when it comes to Malaysians you have lots of excuses!
I have been in the Oil & Gas Industry for the last 21 years & believe me there ARE enough Malaysian Petroleum Engineers & GeoScientiests. Ask any Malaysian working tin the Oil & gas Industry.
HOWEVER, since Petronas (Carigali) prefers NOT to pay Malaysians well, these Malaysians therefore work elsewhere (not only in the Middle East but around Asia also including Indonesia & Brunei).
Also, many of them work for the "other" Malaysian Operators. Again because the "other" Malaysian Operators are willing to pay Malaysians well (unlike Petronas)!
Not many Malaysians know what's happening in Petronas because it's "traitors" like you who are "covering-up" the truth!

2:11 PM GMT+8  
Anonymous chartered as well said...

PETRONAS can’t match the salary offered by the other firms since we’re operating for the benefits of the rakyat. Or else, ppl like u will start complaining abt PETRONAS paying too much and so on. It’s a fact that the O&G industry (which is growing at a very fast rate) is facing a very acute shortage of qualified or experienced personnel, so most companies are willing to pay lots of money to entice and pinch staff from their competitors. Btw do you have any proof on the “fat” cheques paid to foreigners? If you have no proof, I guess your point is not valid then.
I’m not covering anything la bro. As I mentioned before, the duly audited full FS is available out there. Some research can do wonders instead of blaming others. If you choose to be ignorant, then I cannot help u.

Have a nice day Sir

3:11 PM GMT+8  
Anonymous chartered as well said...

U seems to be a very angry person. hence, i would like to share one interesting story with u. have a nice weekend :). i'm outta here.

"One day I hopped in a taxi and we took off for the airport. We were driving in the right lane when suddenly a black car jumped out of a parking space right in front of us. My taxi driver slammed on his breaks, skidded, and missed the other car by just inches! The driver of the other car whipped his head around and started yelling at us. My taxi driver just smiled and waved at the guy. And I mean, he was really friendly. So I asked, 'Why did you just do that? This guy almost ruined our car and sent us to the hospital!' This is when my taxi driver taught me what I now call, 'The Law of the Garbage Truck.' He explained that many people are like garbage trucks. They run around full of garbage, full of frustration, full of anger, and full of disappointment. As their garbage piles up, they need a place to dump it and sometimes they'll dump it on you. Don't take it personally. Just smile, wave, wish them well, and move on. Don't take their garbage and spread it to other people at work, at home, or on the streets. The bottom line is that successful people do not let garbage trucks take over their day. Life is too short to wake up in the morning with regrets, so..... 'Love the people who treat you right. Pray for the ones who don't."

3:13 PM GMT+8  
Anonymous Anonymous said...

I guess US$800 to 2,000 a day paid to those "Mat Sallehs" is not considered as "Fat Cheques"?!
What about the Indonesians who are being paid US$7,000 per month, while "Malaysians who are equally qualified are paid RM7,000 per month?! Of course I can't prove it! However, all those Malaysians in the O & G Industry know what's happening in those "Ivory Towers".
What about all those foreigners being paid "fat salaries" to play in the Petronas Orchastera? I guess that's supposed to be "operating for the benefit of the rakyat"?!
You can't fool all of the Rakyat all of the time because some of us do know what's happening in Petronas! I guess you are trained to lie too in the Finance Dept?!
Sorry bro, I feel sorry for you because you really seem to "believe" what you are saying.

9:07 PM GMT+8  
Anonymous Anonymous said...

As much as you claim to be from the finance dept, the big 4 audit firms namely PwC, EY and KPMG's former audit staffs who have worked on Petronas Projects know the amount of wastages and expenditures that have taken place. There is no transparency on appointment. Scholarships are provided to "who you know", staff retention is poor due to mismatch of interest with offer ( a lot of good malaysians quit petronas or terminate their scholarships), bailing of Proton and MISC (inclusive of loans and purchase of shares at unreasonable price), and many more.

Loads of wastages falls under operating expenses e.g. entertainment expenses, commission, rentals, transportation, etc. You name it, everything is there.

This company's triple bottom line reporting is one of the poorest among all oil and gas companies. Investments in Petronas Fertilizer Kedah is so poor that making profit is a dream come true. HSE is poor, marginal improvement at present.

Hiring of substandard foreign lecturers in UTP. Usage of Petronas money to finance Putrajaya, when in fact it is not Petronas's core principal activity.

Signing of LNG with Japan for XX number of years at fixed price. Absolutely stupid contract negotiators. Delivery of LNG to Gujarat only to be turned down due to lack of space. Huge contingent liabilites due to legal cases and environmental issues but never disclosed to Malaysian public.

There was once, oil refined was of poor quality but to avoid wastage, the engineers mixed it with good oil and sold it to the public. Poor ethical considerations.

Well, the Malaysian public knows and the audit partners of the Big 4 how inefficient that Petronas is,but it won't be disclosed.

Why? Simple, Malay Audit partners from HRM, EY, PWC, KPMG would go on becoming President, CEO, Board of Directors of Petronas.

The fucking system has no credibility. Proof. Hassan Merican and Azizan are both from Hanafiah Raslan Mohamad/Arthur Andersen.

People from Petronas are roped into the audit firm and trained to be Partner of Audit Firm. Eg. an employee by the name of XXXXX XXXXXXX from Petronas SA, was brought into Ernst and Young and trained into Partner. He is in charge of Petronas audit.

Where is the fucking transparency?

Let me tell you something, those who claim to be from the Finance Dept. are actually bunch of fools.
Another person, George Ratilal, former auditor of HRM. All cronies are in Petronas.

Layman Finance executives know nothing That chartered as well is a bullshit of the highest core.

THE CEO, CFO, gov. bastards and audit partners are respnsible and know the mockery that takes place in Petronas.

9:37 PM GMT+8  
Anonymous Anonymous said...



read these. i guess the dream has become a reality, long time ago (and yes the profits are increasing yr by yr). seriously, u've too much too write, but no substance at all(may be a lil bit harsh, yeah i admit we're not perfect but not as stupid as u said). educate yourself first before making allegations. u really look like a fool. i CAN answer all ur questions, but what's the point of me wasting my time for a fool like u?

Take a deep breath brother. I’m afraid that u can catch a heart attack for being too angry. :)

8:12 AM GMT+8  
Anonymous Anonymous said...

PETRONAS has been audited for ages by the like of Ernst & Young, KPMG, Pricewaterhouse and Andersen, so the idea that PETRONAS' account is not audited independently is total crap.

Secondly, PETRONAS has several public-listed companies like PETRONAS Dagangan Berhad, PETRONAS Gas Berhad and MISC Berhad. Do go and check their accounts in the Annual Report first before you make any foolish allegation. Next, why didn't you ask other GLCs like Syabas, TNB, and Telekom to reveal their full accounts too? As far as I know, natural resources like hydroelectricity and fresh water belong to the rakyat too.

Khairy is a overrated spoiled brat who thinks that every GLC's money that doesn't flow and pass through his bank account should be audited, humiliated and their leaders be replaced by his own puppets? If you still agree with Khairy, then you are just supporting his ambition to take away all PETRONAS money from the rakyat, giving it to him on a silver platter! By the way, did you know for a FACT that he actually lost in Rembau's election?

Orchestras, F1, 5-star hospital, Putrajaya, these are all efforts by PETRONAS to increase the status and image of Malaysia. The spinoff benefits from these are in billions through tourism and PETRONAS well-known product branding worldwide. Syntium, PETRONAS's lubricants are now globally due to its fame for sponsoring BMW Sauber F1. Go and check outside in ASEAN or Europe, unless you are a non-travelling Malaysian who stays comfortably under you shady tempurung.

If you think that the all Malaysia's oil is yours, then why don't you just go, use your own money and dig it up yourself in Kikeh, 1.5km under the sea...

12:19 PM GMT+8  

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