Cheating scams on the rise

By THO XIN YI

MANY people are duped by cheating scams because of greed and gullibility, according to a senior police officer.

Selangor Commercial Crime Investigation Department chief Asst Comm Mohammad Karim Abu said there was no such thing as easy cash windfall, but many people were greedy and gullible enough to fall for the quick-money tricks.

Mohammad said this when opening a seminar on Fraud – The Silent Crime at the Binary University College in Puchong, Selangor, last Saturday. About 30 people were present.

The seminar was sponsored by GSL Materials Recycling Sdn Bhd and organised by the Kinrara MCA Service Centre and the Selangor branch of the Malaysian Crime Prevention Foundation (MCPF).

According to Mohammad, one common scam is the SMS ruse telling the message recipient that he had won a big sum of money in a contest or lottery and that he would receive the prize money if he banked into an account several hundreds of ringgit as service or processing charges.

“Last year, 2,124 cases of commercial crime were reported in Selangor, with a value of RM1.64bil,” he said.

“In the first half of this year, 1,726 cases were reported.

“This is a 57.6% increase over the 1,094 cases recorded in the first half of last year.

“Thus, we expect a 100% increase by the end of this year,” Mohammad said.

Topping the list of cases last year was cheating (1,217 cases), followed by criminal breach of trust (468 cases) and possession of illegal or X-rated DVD/VCD (189 cases).

Most of the cases were reported in Subang Jaya (609), followed by Petaling Jaya (418) and Klang (318 ).

According to Mohammad, unlike the Criminal Investigation Department, the Commercial Crime Investigation Department needs a longer time in investigating a case before charging an accused in court as many complications have to be sorted out.

“We send out letters every three months to the complainants to inform them about the latest status of their cases,” he said.

Supt Ng Keok Chai from the Selangor commercial crime unit, who was the main speaker at the seminar, touched on various issues related to cheating scams.

He highlighted the various types of fraud, symptoms of fraud, why people commit fraud, fraud detection and fraud prevention.

According to Ng, the types of fraud include superstition scams involving bomohs and mediums, land fraud, car purchase racket, online shopping swindle, and tear-and-win ruse.

Dr Kow Cheong Wei, a Selangor MCPF committee member, said the cheating syndicates often used the names of established companies to deceive their victims.

“Before carrying out a promotion, a company will have to register with the Domestic Trade and Consumer Affairs Ministry,” he said.

Kow said to curb the fraud problems, the government should make it compulsory to list down the registration numbers at the ministry's website for people to check the genuineness of the promotion.

The public can reach the Selangor Commercial Crime Investigation Department operation room at 03-2616 3999/3822.

The auditing profession – the way forward

SHAREHOLDER ACTIVISM
By ABDUL WAHAB JAAFAR SIDEK

FOLLOWING the much publicised accounting-related irregularities notably in Transmile and Megan Media, there have been calls for tighter regulatory control of auditors. This has particularly put pressure on the role of the accountancy profession.

Can public and investor confidence in the audit process be restored without increasing the degree of statutory regulation?

More statutes and guidelines will not assure that the like of what has happened will not happen again. The accounting scandals have not only adversely eroded the trust of the shareholders and stakeholders in the affected companies but also affected the integrity of the capital market, the regulators and the profession.

No wonder some fierce criticism of the profession had been voiced.

This criticism is not entirely ill-informed or unfounded, albeit the profession’s slow response to closely monitor auditors for compliance with audit regulations and prescribed standards for professional ethics and business practices.

Regulating auditors will certainly involve more costs for audit practices. Yet, the public feel it is the profession’s role and responsibilities not only to address their concerns but to ensure that auditors do not allow such incidences of accounting scandals to arise again in future.

The public perception of the auditors to be blamed for corporate debacles is rife. Three main issues have then developed.

First, what is the best means of ensuring the auditor independence and the audit quality?

Second, how should the duties of auditors blend with the corresponding duties of directors to exercise the oversight process over the management of their company? Are directors not accountable for drawing up the accounts to be examined by auditors? Auditors are not expected to conduct an audit like forensic review for a complete audit of each and every transaction.

Third, why can’t the audit committees perform as they should? Why are directors not alert and watchful at the helm putting in place prudent management and control over the credibility of the financial statements? Why can’t the external and internal auditors effectively address such matters of concern out of their own initiative?

The profession’s guidelines are that the auditors’ duties are statutorily limited.

However, the guidelines not only help auditors understand their responsibility better but also to properly plan, perform and evaluate their audit work.

Besides reporting matters of public interest, the company’s books and records must be properly kept and the accounts, which the directors have drawn up, should show a true and fair view.

Auditors need not have to prevent or detect misstatements in the financial statements but their audit procedures need to be designed such that fraud risks can be identified.

Recent amendments to the Companies Act 1965 requires auditors of public companies to make a written report to the Registrar if, in the course of their duty, are of the opinion that a serious offence involving fraud or dishonesty is being or has been committed against the company.

Failure to report such an offence attracts criminal liability against such auditors. However, ultimately the reporting and detection of fraud still remain the responsibilities of directors.

The profession also accepts that auditors’ adherence to its guidelines will not assure each and every material fraud to be uncovered.

Not only for the cost-effective audit, auditors are not in a position to delve into all details about what is going on inside the company.

The old saying about auditors as a watchdog, not a bloodhound, may to a certain extent still applies. Nonetheless, the profession still owes a responsibility to the public and investors for the quality of auditing and financial reporting. They should not shirk their responsibility to provide an early warning if there is a need to do so.

In its efforts to ensure a more resilient capital market, the profession has also set up the Financial reporting standards implementation committee (FRSIC) to provide implementation guidance for enhancing better financial reporting standards (FRSs).

The Profession has urged directors of companies, audit committees as well as auditors and preparers of financial statements to refer critical issues of doubt to FRSIC for clarification.

It is here that a special body, the Public companies accounting oversight board (PCAOB), has a critical role, that is to help monitor auditors of public companies and improve investor confidence.

It is a body set to emphasise the significance of the role of auditors and audit quality in attesting and providing credibility to the financial statements prepared by the companies.

The PCAOB would also ensure the auditor independence and the quality of audit.

Currently, errant auditors are referred to the Malaysian Institute of Accountants (or in short, MIA) which would then investigate and discipline their members.

Has this been effective? Would it now be left to the PCAOB to take appropriate action against errant auditors?

The PCAOB should be granted broad investigative and disciplinary authority over registered public accounting firms and persons associated with such firms.

If the auditors are found to be negligent or worst still fraudulent, the PCAOB must have the power to take appropriate actions.

It is most important that the public and investors can perceive the investigation process to be fast, not long winded or ineffective.

The PCAOB must be able to act promptly and punishment meted out quickly. For an independent PCAOB, its Board must be appropriately composed of people with repute and integrity.

The legislation has also to be put in place for the PCAOB to function legally so that errant auditors cannot justify themselves by saying they act under undue influence or duress in cases where they are put under inquiry.

The auditor’s report is entirely his own responsibility.

If the auditor has concluded that, because of doubts about whether the company is a going concern, he will have to qualify or disclaim his opinion.

His responsibility is to ensure that the company is warned and that the directors take appropriate action to resolve the auditor’s doubts.

The directors have no right to advise or instruct an auditor that he should not qualify his report to enable him to shift the burden of his judgment onto either the company or any other party.

For investors’ interests to be best protected, auditors need to express their opinions honestly and forthrightly under the law.

Which auditors are to be appointed, how much auditors should be paid including non-audit services and for how long in office even with the rotation system should now be the responsibility of both directors and shareholders.

The profession should be now happy to see rising standards in compliance of FRSs.

It is also hoped that the PCAOB will create a more effective enforcement mechanism for auditor independence that will restore not only investor confidence but also the integrity of the profession at large.

Unscrupulous, inefficient and incompetent directors or auditors are to be found in all parts of the capital market.

Fortunately, they are very few in numbers, but they are there. What they do and do not do appropriately, hopefully the PCAOB will not take too long to catch up with them.

· Abdul Wahab Jaafar Sidek is CEO of the Minority Shareholder Watchdog Group (MSWG)

Oilcorp external auditors removed

BY JAGDEV SINGH SIDHU and LOONG TSE MIN

Appointment of new auditors postponed

KUALA LUMPUR: Shareholders of Oilcorp Bhd in a near unanimous vote yesterday booted out the existing external auditors. The shareholders were unhappy on finding out the company faced the prospect of delisting after its annual accounts were accompanied with a disclaimer report.

Plans to appoint Messrs Horwath to replace Baker Tilly Monteiro Heng were scuttled after the former declined the appointment, citing regulatory process, which then forced Oilcorp to adjourn the EGM for shareholders to vote on Horwath's appointment to Aug 12.

“The company wishes to inform that Messrs Baker Tilly Monteiro Heng has been removed as auditors of the company with effect from July 21, 2008,'' Oilcorp said in a statement yesterday.

“The vacancy created by the removal of Messrs Baker Tilly Monteiro Heng, however, has yet to be filled pending the issuance of the necessary professional clearance by Messrs Baker Tilly Monteiro Heng and the consent to act from Messrs Horwath.''

At the Oilcorp EGM (From right) chairman Mohamed Taib Mahmood, group MD Sunny Ng Huat Tian and executive director Ang Choon Hug.

It said the appointment of Horwath to fill the vacancy would be considered at the EGM on Aug 12.

Horwath will also be asked to audit the company's 2007 financial accounts again.

The dispute stems over the validity of a RM110mil contract from Plant Biofuels Corp Sdn Bhd to Oilcorp subsidiary Oil-Line Engineering & Associates Sdn Bhd. Oilcorp hired Horwath to conduct an investigative review of the contract value.

In a controlled and civil EGM called to remove Baker Tilly Monteiro Heng as auditors, shareholders voted 99.9% in favour to do so.

Horwath, which had earlier announced it would not take over as external auditor of Oilcorp, citing the absence of professional consent from Baker Tilly Monteiro Heng, then reiterated its decision.

Stating advice from the Malaysian Institute of Accountants, Howarth said a new external accountant must obtain the consent from the auditor it was replacing before it could take over.

“Up to this morning, Baker Tilly Monteiro Heng has not given its professional clearance,'' said Horwath partner Lee Kok Wai.

He said Horwath had written to Baker Tilly Monteiro Heng, which had 14 days to reply. That expires today and failure to give consent will result in Baker Tilly Monteiro Heng being given a further 14 days to do so.

The call to remove Baker Tilly Monteiro Heng was made by the single largest shareholder of the company, Pramaddun Holdings Sdn Bhd.

During the EGM, presentations by Baker Tilly Monteiro Heng, Oilcorp and Howarth were made to shareholders to help shed light on the dispute between the auditors and management.

After the EGM, Oilcorp directors insisted there was no element of fraud in the entire event.

“The whole issue stems from a flow of documentation,'' said director Eng Chip Jin, who is also chairman of the firm's audit committee.

“But the weakness does not cast doubt on the validity of the contract.''

The company said invoices for the biodiesel project was now RM105mil and collection of money from Plant Biofuels Corp was more than RM85mil.

The company said it had learnt a lesson from the entire episode. It now realised the consequences of putting a disclaimer report with its annual accounts and said it would now try to complete its accounts earlier, probably in February, instead of leaving it to the last minute.

Oilcorp group managing director Sunny Ng Huat Tian said there had been a financial impact from the audit impasse as its bankers were edgy since the disclaimer, adding that it might have affected the securing of new contracts.

Source The Star 22.7.2008

No fraud in land deal, says ex-DCM

DERRICK VINESH and ANN TAN at the Penang State Assembly yesterday

THERE was no misappropriation of funds in the land deal made by the previous state government that could cost Penang to lose up to RM40mil because of an error, according to former deputy chief minister Datuk Seri Dr Hilmi Yahya.

Dr Hilmi said that during his tenure as state Land Committee chairman between 1999 and 2004 the state government had discovered the error and taken action to rectify it.

“The state government withdrew the land offer to the injured party, who in turn sued the state.

“The matter is still pending in court as the state had appealed to reduce the compensation amount,” he told reporters during tea break at the state assembly here yesterday.

Dr Hilmi said the present state government could review several aspects of the case to bring down the compensation amount.

He said action had already been taken against the state officer concerned over the negligence, adding that since the case had yet to be settled in court it had been brought to the attention of the present state government.

On Monday, Chief Minister Lim Guan Eng, in his winding-up speech, said the state could incur losses of up to about RM40mil due to negligence by the previous administration in approving a 4.3ha plot of land to be leased to an individual.

Lim said the land deal should not have taken place, as the plot was too big to be given to an individual.

He said yesterday that former chief minister Tan Sri Dr Koh Tsu Koon should apologise to the public on the matter.

Lim added that Dr Koh should share the responsibility, as he was the head of the state executive council at the time.

On PKR de facto leader Datuk Seri Anwar Ibrahim’s decision to contest in Kulim Bandar Bahru, Lim said the DAP would support Anwar wherever he wished to stand.

Source: The Star 30.7.2008

No clear-cut formula to prevent fraud

By ELAINE ANG

ACCOUNTING scandals such as the ones uncovered at Transmile Group Bhd and Megan Media Holdings Bhd are not the first to have rocked corporate Malaysia nor will they be the last.

This has highlighted the importance for companies to have good internal controls, corporate culture, the right people and responsible leadership among others.

According to Pricewaterhou-seCoopers (PwC) Malaysia senior executive director Jiv Sammanthan a company needs to combine controls with its people and culture to strengthen fraud response or prevention.

“Fraud cannot be fully prevented. We can minimise the incidents but cannot fully eradicate it.

Jiv Sammanthan

“We must first acknowledge that fraud is, at root, a people issue. All that is needed is for one person to be motivated enough, combined with available opportunity, to commit fraud,” he told StarBiz.

He said experience had shown that controls alone were insufficient and even well designed controls could be circumvented.

“There is no a 'one size fits all' fraud prevention system that can be implemented due to the differences in size, industry and markets that companies operate in.

“Companies should consider what is appropriate after taking into consideration the organisational values, ethics and behavioural expectations,” said Jiv, who heads the governance, risk and compliance unit.

For starters, Jiv said a company should hire the right people, create a corporate culture which encourages ethical behaviour, create systems that have a chance of detecting fraud and define a process including specific actions to deal with ethical issues when they happen.

He highlighted two ways in which fraud could be detected – through risk management controls and system or by chance, for example, via tip-offs (internal or external).

Jiv said when fraud was detected, the management needed to be objective and focus on the facts and gather more information and evidence to support, corroborate or confirm their suspicions.

“The management must try to limit the number of people to discuss their suspicions with.

“However, the issue can be escalated if needed or required by internal procedures, for example by informing the audit committee or board of directors,” he added.

The management should consider whether assistance – lawyers or forensic accountants – is needed to resolve the matter as well as appropriate steps for immediate or further action.

Jiv also cautioned companies on what not to do when fraud is discovered or a tip-off is received:

·Don't dismiss it as a mistake or misunderstanding

·Don't assume other persons will deal with, or handle it

·Don't delay or procrastinate in taking action

·Don't approach the matter emotionally or impulsively or act hastily

· Don't “threaten” the suspect

·Don't “broadcast” your suspicions openly

·Don't make assumptions, conclusions or judgments without sufficient evidence.

However, Jiv sees setting a strong culture of ethics and integrity, coupled with clear boundaries, as one of the main challenges companies face in fraud prevention.

“Sometimes, doing the right thing may not be apparently beneficial to a company and even 'good' people/managers may make bad choices.

“This is especially when there is lack of clarity in the boundaries that they operate in,” he said.

Another challenge is for companies to have a responsible leadership.

“The senior people will need to walk the talk. Responsible leadership strives to deliver the triple-bottomline (economic, social and environmental) and achieve sustainable value creation.

“It builds sustainable relationships and creates an admired brand, one that is trusted by stakeholders.

“If a company has a strong culture of ethics, doing the right thing and integrity, it will attract the right people and that will pay dividends,” Jiv said.

On the regulatory aspect, Jiv noted that there had been an effective push in terms of regulations to minimise and prevent fraud – the Malaysian Corporate Governance Code as well as the Companies Act – which has been amended to give it more “bite”.

“The regulators are doing the right things but organisations need to do their bit too,” he said.

 

Argentine banker: I stole on orders at JPMorgan

NEW YORK (AP) - A banker arrested in Argentina on charges that he stole more than $5 million from the accounts of customers at UBS AG and JPMorgan Chase claims he was only following orders when he laundered money to avoid paying taxes, his defense lawyer said Tuesday.

Banker Hernan Arbizu was arrested Monday in Buenos Aires on a U.S. request to extradite him to New York, where he faces up to 30 years in prison and more than $5 million in fines if convicted of embezzlement, bank fraud and aggravated identity theft.

Arbizu, 39, will challenge his extradition but is ready to cooperate with authorities in any way, defense lawyer Pablo Argibay Molina told The Associated Press.

In fact, when the U.S. charges were filed in May, Arbizu not only turned himself in but also acknowledged the charges against him in a declaration to the court titled "My error,'' Molina said.

In the declaration, Arbizu described the crimes he committed, but said they were common practices that JPMorgan used to evade taxes and launder ill-gotten money, the lawyer said.

Prosecutors say Arbizu was a vice president in the private banking division at JPMorgan, responsible for maintaining and developing private banking relationships in Latin America, when he embezzled the money between March 2007 and April 2008.

He caused $5.37 million to be transferred out of private banking accounts at the UBS and JPMorgan financial services companies during that time, court papers said.

Molina challenged that figure, saying the total was $2.8 million.

JPMorgan Chase & Co. fired Arbizu in May. A spokesman said Tuesday the company "appreciates the cooperation and the prompt joint action of the Argentine and American authorities'' but would not comment beyond that.

In a civil lawsuit filed last month in federal court in Manhattan, JPMorgan accused Arbizu of stealing company property, including confidential and proprietary information, documents, materials and assets.

The company said it had given Arbizu responsibility for 18 months beginning in November 2006 to manage more than $200 million in assets for its clients and had paid him $300,000.

It said that in his position, he was responsible for developing and maintaining relationships with wealthy individuals and their related businesses, corporations, trusts, institutions and other entities in Argentina and Chile.

It said that in May it discovered Arbizu had caused unauthorized and illicit wire transfers between the account of a client and accounts at other firms.

"In the meantime, defendant has fled to Argentina,'' it said. "JPMorgan terminated him immediately thereafter.''

The company said it sought through its lawsuit to block Arbizu from exploiting the knowledge he had from managing 13 accounts for his own gain or the gain of a competitor.

JPMorgan said the confidential information included names, addresses, telephone numbers, income sources and amounts, asset holdings, investment preferences, risk tolerances and financial goals.

In the lawsuit, JPMorgan said Arbizu had called the head of JPMorgan's Latin American Private Banking division, Alvaro Martinez-Fonts, and "confessed to his wrongdoing and stated that he feared returning to the United States would result in his arrest.''

The lawsuit sought to force Arbizu to give up anything he had stolen.

Source: The Star 30.7.2008

Police investigating RM100mil logistics fraud bid

By LOURDES CHARLES

KUALA LUMPUR: The federal police logistics department has uncovered attempts by unscrupulous suppliers to cheat it in the supply of equipment worth more than RM100mil.

It is learnt that Inspector-General of Police Tan Sri Musa Hassan has set up a committee to investigate, and ordered the immediate transfer of at least 12 officers and men, including an Assistant Commissioner of Police.

Also transferred and under investigation are several civilian staff in the finance department.

“We have reported the matter to the Anti-Corruption Agency (ACA) and ACA officers have met our officers, questioned them, and taken away several documents,” he added.

“We have started an internal investigation as we believe we can save the Government hundreds of millions of ringgit by preventing suppliers from providing us with sub-standard products.”

Musa said he believed certain quarters with vested interest had been accepting the goods ordered without conducting proper pre-delivery checks.

The IGP said the committee in the logistics department headed by its director, Commissioner Datuk Mahsuri Zainal, had been scrutinising every single order and found several discrepancies.

Among the equipment or goods rejected recently were boots for the elite SWAT unit, machetes (parangs) for the General Operations Force, evacuation packs for officers and men serving in Timor Leste, beds, road-block signages and cones.

“As a result of the stringent checks, many started writing and hurling allegations and accusations against the members of the committee,” Musa added.

“They are not happy with the stringent procedures now in place as they were used to having it their way, with no questions asked.”

In a related incident, a whistle-blower has alleged that six high-ranking officers from the logistics department had committed malpractices when making purchases worth RM98mil earlier this year.

The whistle-blower detailed at least six instances during the pre-election and election season where the officers were said to have bypassed standard operating procedure when making purchases.

The person made the allegation in a letter to Malaysia Crime Prevention Foundation executive council member Tan Sri Robert Phang on July 23.

In the same envelope, the whistle-blower included four copies of the same letter. The person requested Phang to make sure the letters reached Home Minister Datuk Seri Syed Hamid Albar, Internal Security Ministry secretary-general Tan Sri Abdul Aziz Mohd Yusof, Inspector-General of Police Tan Sri Musa Hassan and Anti-Corruption Agency director-general Datuk Seri Ahmad Said Hamdan.

Source: The Star 30.7.2008

Report land deals to ACA, Lim told

GEORGE TOWN: Chief Minister Lim Guan Eng should lodge a report with the police or Anti-Corruption Agency (ACA) if he has evidence of any fraud and embezzlement on land deals, his predecessor Tan Sri Dr Dr Koh Tsu Koon said.

Dr Koh said from what he knew so far, there had been no fraud or embezzlement involving former state executive councillors over a land deal which Lim claimed could result in the state incurring losses of up to about RM40mil.

“By repeatedly playing up this case and quoting the sum, Lim has given the impression that the present state government agrees to the big quantum as claimed by the plaintiff.

“This would endanger the case initiated by the previous state government to substantially reduce the claimed quantum,” he said in a statement yesterday.

“Is Lim more interested in playing politics and trying to embarrass me and the previous state government than fighting the court case and saving money for the state government?” he asked.

Lim in his winding-up speech at the state assembly sitting on Monday had said the state could incur the losses due to negligence by the previous administration in approving a 4.3ha plot of land to be leased to an individual.

He said the land deal should not have taken place, as the plot was too big to be given to an individual.

Dr Koh explained that the plot was mistaken as state land and approved to be leased to an applicant for quarrying purposes.

He said the previous state government immediately took action to return the plot to the rightful owner and revoked the approval after which the applicant took the state government to court.

He added that the previous state government, which lost the case, did not agree to the quantum even after it was reduced by one quarter and decided to continue fighting the case in court.

Source: The Star 31.7.2008

Thai, Malaysian cops to jointly tackle cybercrime

CHIANGMAI: Malaysian and Thai police will cooperate to stem the rising tide of cybercrime.

Inspector-General of Police Tan Sri Musa Hassan said the two countries would share intelligence to get more information and identify the groups involved in Internet-related scams, as well as their modus operandi.

"We are living in a globalised world ... where people from different nations are offering business to citizens in other countries with the intention to cheat them," he said.

Musa said many people had been duped by promises of wealth via methods such as the Nigerian letter scam, black money and credit card fraud.

Police had uncovered syndicates run by Malaysians and African nationals, he said at a media conference at the end of the two-day 19th Departmental Review of the Joint Malaysia-Thailand Working Committee on Criminal Activities.

Also present were Thai Police chief General Patcharawat Wongsuwan and Malaysian CID chief Datuk Mohd Bakri Zinin.

Two weeks ago, Thai police arrested 18 Nigerians who were involved in an Internet scam in Bangkok.

"We need more information to educate the people so that they will not fall for such scams," Musa said.

He said that with better cooperation and sharing of database, police would be able to identify the culprits involved and bring them to justice.

At the meeting, Malaysia and Thailand also agreed to enhance cooperation and map out new strategies to tackle transnational crime.

The other priority areas include terrorism, vehicle theft and human trafficking, Musa said, adding that the issue of sea piracy would be discussed further at their next meeting in Sabah next year.

Musa also said that the level of cooperation among Asean police would be greatly enhanced when the Aseanpol permanent secretariat is established in Kuala Lumpur. -- Bernama

Bank warns of phishing scam

By M. Krishnamoorthy

KUALA LUMPUR: Fraudsters playing on fraud -- that is the phishing scam involving a local bank’s Internet banking site.

You would have received an e-mail titled Public Bank Security Precaution, purportedly from the bank, stating that there has been a recent report that a fraudulent e-mail is circulating.

“You are required to confirm your Online Access profile to prevent this. To initiate this process use the Logon link below, Help us keep our bank Safe from Online Fraud,” the e-mail states.

A Public Bank spokesman said anyone receiving such an e-mail should delete or ignore it.

“The bank has not issued the e-mail and it is a scam.”

The e-mail provides a hyperlink, which appears to link to the Internet banking service, but instead redirects customers to a fraudulent (“spoofed”) website, which has a login page that is identical to the real website.

Customers who try to login would inadvertently reveal their User ID and password. The spokesman assured that this fraud attempt had not affected Public Bank’s Internet banking service.

“We have a policy never to communicate security matters to customers via e-mail.

“You should never access the website via a hyperlink from an e-mail,” the spokesman added.

If you if any queries, contact: Customer Support Helpdesk ” 03-2179 5000 or via e-mail ” customersupport@publicbank.com.my.

ING shares fall sharply, company unveils losses

AMSTERDAM, Netherlands (AP) - ING Groep NV abruptly reported losses in the third quarter on Friday, in response to a sharp drop in its share price as rumors swirled that it is facing a shortage of capital.

The bank and insurance company said it expects a net loss of around euro500 million (US$670 million) for the quarter, due to euro2 billion (US$2.68 billion) in various investment losses, write-downs and provisions for bad loans.

Last year it reported net profit of euro2.31 billion in the third quarter.

The company's shares recovered from even sharper falls before the news was released and closed down 24 percent at euro7.70 (US$10.31).

In March, ING was ranked among the top 20 financial services companies globally in terms of market capitalization, but its stock has lost nearly three-quarters of its value since then.

"Current developments in financial markets are unprecedented,'' said Chief Executive Michel Tilmant in a statement.

"Even the healthiest companies are feeling the negative effects.''

Tilmant did not directly address the question of whether ING needs to raise capital.

In its statement the company said that, as of Sept. 30, its banking operations are within target solvency ratios and it retains a low risk "AA'' credit rating.

However, it also noted the Dutch government has earmarked euro20 billion (US$27 billion) to assist any financial companies in trouble.

A spokeswoman declined to comment on whether the company will seek to tap government money this weekend.

The Netherlands has not specified how that money would be made available, but the country's finance minister said terms would be strict and receiving it would be conditional on executive bonuses being curtailed.

"The merits of the government program will be considered once the details are available,'' ING said.

The company repeated that its earnings will be released on Nov. 12 as scheduled and information released Friday is preliminary.

Source: The Star 18.10.2008

Taiwan bank buys subsidiary of Netherlands' ING

TAIPEI, Taiwan (AP) - Taipei Fubon Financial Holding Co. announced Monday a US$600 million plan to acquire the Taiwanese subsidiary of Netherlands' ING Groep NV.

Fubon Chairman Daniel Tsai said Taiwanese ING Life Insurance will merge with Fubon Life Insurance to become Taiwan's second largest insurance firm with assets totaling 1 trillion New Taiwan dollars (US$30.5 billion).

With the acquisition, the ING group will acquire 5 percent of Fubon Holdings' newly issued shares and an unspecified amount of cash, which it will use to buy Fubon's bonds, Tsai said.

"The ING Group will not pull its funds out of Taiwan following the deal,'' Tsai said in a statement.

He said Fubon decided to buy the ING subsidiary because of its sound liquidity.

"It almost didn't possess any foreign structured notes,'' he said.

Hans van der Noordaa, a board member of the Amsterdam-based ING Group, said the merger is expected to significantly boost Fubon's revenues in Taiwan's insurance market. ING has 2.2 million clients in Taiwan.

On Sunday, the Dutch government announced it will invest euro10 billion (US$13.4 billion) in ING Groep NV to boost the bank and insurance company's capital position.

The deal, which makes the Dutch government a major shareholder in ING, was necessary even though there had been no run on the bank, Dutch Finance Minister Wouter Bos said.

Source The Star 20.10.2008