Friday August 3, 2012
Silver Bird auditors deny allegations
By THOMAS HUONG
PETALING JAYA: The external auditors of Silver Bird Group Bhd have denied the allegations of negligence and breach of duty of care by the Practice Note 17 company.
Accounting firm Crowe Horwath AF 1018 said in a statement it firmly believed that it had discharged its duties and responsibilities as the auditors of Silver Bird in accordance with approved auditing standards.
Te recap, on Wednesday, Silver Bird, together with its wholly-owned subsidiaries Stanson Marketing Sdn Bhd and Standard Confectionery Sdn Bhd, filed a suit against two of its former directors, an ex-general manager, several companies and its auditors at the Kuala Lumpur High Court.
The suit claimed, inter alia, the sum of RM125.03mil as special damages, as well as general damages, punitive and aggravated damages, interest and costs in respect of the financial irregularities in Silver Bird and its units.
Among other sought orders, Silver Bird said it was seeking a declaration that Crowe Horwath (as the external auditors) as well as Audex Governance Sdn Bhd and Focus Internal Audit Solutions (as the internal auditors) had breached their duties or obligations, or were negligent.
Silver Bird said the suit against all the defendants was fixed for case management at the High Court on Sept 3.
Crowe Horwath's engagement partner Onn Kien Hoe said the financial irregularities were “discovered by Crowe Horwath and were immediately reported by us to the audit committee and board of directors of Silver Bird.”
“We believe that the suit by Silver Bird is frivolous in nature and without basis. We strongly believe that we have fully discharged our duties professionally and will vigorously defend our position in court,” said Onn.
Meanwhile, on Thursday, Silver Bird received three letters, all dated July 27, 2012, from Maybank Islamic Bhd and Malayan Banking Bhd (the lenders) vide Messrs Rahmat Lim & Partners, demanding for the payment of RM78.5mil which is part of the default in payment by the company.
This was due to Silver Bird being the corporate guarantor for the banking facilities granted by the lenders to Stanson Marketing and Standard Confectionery.
Silver Bird told Bursa Malaysia it was currently seeking advice regarding the letters of demand.
“It is not expected to have any financial or operational impact as such claims are envisaged to be restructured pursuant to the regularisation plan being formulated for the group.
“There will be no further losses expected as the amount claimed has been fully provided in the accounts,” said Silver Bird.