Kwok unhappy with audit report

PUBLISHED : Friday, 16 January, 2009, 12:00am
UPDATED : Friday, 16 January, 2009, 12:00am


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Former Sun Hung Kai Properties chairman Walter Kwok Ping-sheung (right) said he was disappointed by the conclusion drawn by an audit committee on the company's governance which cleared it of any bad practices.

'Mr Kwok thinks the conclusion is disappointing,' his spokesman said yesterday. 'The committee's reviews are not comprehensive and in-depth enough.'

SHKP's board of directors yesterday affirmed a report by its audit committee on its corporate governance. The report's publicly released findings have been criticised by a group of minority shareholders because they lacked details.

'We asserted the audit committee's conclusion that the company's outsourcing contract system is sound and healthy,' said the company in a statement last night.

'Moreover, we also agreed with the conclusion that accusations by former chairman Walter Kwok Ping-sheung on land purchases were totally unfounded.'

Small shareholders at SHKP wrote an open letter last week criticising the company for not giving any details in its governance report.

They also doubted the independence of the report, given the link between KPMG, which was appointed by the committee to carry out the review, and the developer's board.

'As SHKP's small shareholders, we think problems involving governance should not be carried through in only a few words,' said the letter, which appeared in various newspapers last Wednesday.

SHKP reiterated yesterday that the accounting firm appointed by the audit committee was not the company's auditor and was commissioned to carry out an independent review.

But SHKP said it would not disclose details of the report as doing so would not be in the best interest of the company and its shareholders since the report contained confidential information.