HUMAN GOVERNANCE

COMPANY FRAUD IN MALAYSIA

NAME VIVEKSARATI A/L SANDRASIGARAN MOHD HAZAR AHMAD RAJA MAHZAN SHAH

MATRIC ID PBS1311014 PBS1321280 PBS1321240

Corporate Governance Generally, effective Corporate Governance would reflect a number of important features which are: a) To promote the efficient use of resources both within the firm and larger economy. b) To assist firms (and economies) to attract low-cost investment capital by improving both domestic and international investor confidence. Transmile erhad Transmile erhad and its Group Group was principal

incorporated in !""# activity is in e$press air cargo, for which it has obtained landing rights in many %sia-&acific countries. The early warning signal for the business's coo(ing-the-boo(s activity was perceived by the public after it failed to meet the submission deadline for the )**+ annual accounts to the stoc( e$change in %pril )**,. This is because the e$ternal auditor did not want to sign the accounts as he was unable to obtain the necessary evidence for the transactions related to trade receivables and the sale and purchase of property, plants and e-uipment in the company and its subsidiary. .arlier on, in /ebruary )**,, the board had approved an unaudited result that had shown an 0*1 increase in revenue, doubled net profit, and trade receivables that had ballooned to 23#0! million from (/ong, The 23!!! )**,b). newly
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million in )**4

appointed director has lodged a police report regarding the false statement on revenue,

property, plant and e-uipment, and payments to third parties. %s a result of that, the former C.5, i.e., the founder and the .6 was charged by the court for the submission of misleading financial statements. 7ummary: The study investigated the coo(ing- the-boo(s activities underta(en by the company mentioned above that have been dubbed as mini .nron financial scandal in 3alaysia. The result of the study showed that the involvement of the top management may be because of self-indulgence, the e$isting law. 7olution: % new dimension of Corporate Governance: 8uman Governance 8uman Governance is an internal, inside-out and values-based conviction to guide the human as the sentient being to behave whereas corporate governance is an e$ternal, outside-in rules and regulations to legislate the behaviour of corporation, as a legal person. 8uman Governance loo(s at the traits of values, belief system, culture and ethics in order to foster a culture based on trust where is the is by that ofan human within the organi9ation of belief action viewed as the soul organi9ation. The rightness!""#$"!% &' (%)*! +"(, )"-%(' '.%, and a lower penalty imposed under

individual is not about being right according to some codified rules or man-made laws but benchmar( against primordial and innate nature. 8ence, human governance when actuali9ed by professional accountants, allows for the emergence of high ethical values and moral conduct, thus disposes fraud. To act towards upholding public trust through accountability for the self: community and universe would become second nature. ;hen human governance as an internal moral compass is being practiced, integrity can be observed.
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ut because integrity is only a symbol of the inner state of values, in order to encourage integrity, it is the shaping of the internal character that needs to be nurtured. 7ince human governance is human-centric and value-based, the <ourney too is peculiar and special to each individual for it is shaped by one's belief, religion, norm, culture. Conclusion 5n the basis of the goodness that human governance can bring to the profession, the way forward is for professional accountants to begin to accept the culture of human governance as the core guiding principle for professional conduct. 6espite our conviction in the ability of this values- and principle-based governance to bring bac( the meaning of integrity in the life of professional accountants, we do not posit for an abandonment of corporate governance. Through this approach, a more holistic governance framewor( will be put in place so that ethical behaviour as originally meant to be in the realm of the accounting profession can be re-actuali9ed to create value and preserve sustainability.