Flight Of Fund
TABLE OF CONTENT
Chapter
Topic
Pages
1.0
Introduction
1
2.0
Problems 1: Lack of internal control
2.1 Root Causes
2.2 Recommended Solutions
2
2
4
3.0
Problems 2: Conflict of interest
3.1 Root Causes
3.2 Recommended Solutions
5
6
7
4.0
Problems 3: Unclear leadership and poor management
4.1 Root Causes
4.2 Recommended Solutions
8
8
9
5.0
Problems 4: Poor documentation
5.1 Root Causes
5.2 Recommended Solutions
10
10
11
6.0
Best solution
11
7.0
Conclusion
13
References
15
1.0 INTRODUCTION
In 2010, Mr. Idris was hired as the Chief Operation Executive (CEO) of Travel Investment Holdings Berhad (TIH), a government linked company (GLC) in logistics and travel related business. The first task as the CEO of TIH was to identify solutions to recover the losses of the company due to the economic crisis in 2009. In order to diagnosis the problem, Mr. Idris called for a meeting among senior managements. He found out that there was no-result investment made by one of the subsidiaries, Malaysian Travels Sdn Bhd (MTSB).
In 2006, MTSB had a joint ventures with Turkistan Global Services Sdn Bhd (TGS) to form a new entity, Malaysian Turkistan Travel Sdn Bhd (MTT), in the purpose of exploring travel business opportunities in Turkistan. In this entity, MTSB holds 40% of the shares whereas the others held by TGS. However, there was no progress after the forming of MTT. He recalled that his friend, Norehan who had worked in MTT before. She told Mr. Idris that the company may have been established under fraudulent circumstances and the staff’s morale was very low due to late salary payment.
Therefore, Mr. Idris decided to have a detailed investigation on MTT by outsourcing to external auditor, Mr. Agoos Bagoos. During investigation, Agoos found out that MTSB only had a few staff and the company operations were severely curtailed due to lack of funds. Besides, there were no relevant documents related to investment in MTT and MTSB did not have any effort
Chapter
Topic
Pages
1.0
Introduction
1
2.0
Problems 1: Lack of internal control
2.1 Root Causes
2.2 Recommended Solutions
2
2
4
3.0
Problems 2: Conflict of interest
3.1 Root Causes
3.2 Recommended Solutions
5
6
7
4.0
Problems 3: Unclear leadership and poor management
4.1 Root Causes
4.2 Recommended Solutions
8
8
9
5.0
Problems 4: Poor documentation
5.1 Root Causes
5.2 Recommended Solutions
10
10
11
6.0
Best solution
11
7.0
Conclusion
13
References
15
1.0 INTRODUCTION
In 2010, Mr. Idris was hired as the Chief Operation Executive (CEO) of Travel Investment Holdings Berhad (TIH), a government linked company (GLC) in logistics and travel related business. The first task as the CEO of TIH was to identify solutions to recover the losses of the company due to the economic crisis in 2009. In order to diagnosis the problem, Mr. Idris called for a meeting among senior managements. He found out that there was no-result investment made by one of the subsidiaries, Malaysian Travels Sdn Bhd (MTSB).
In 2006, MTSB had a joint ventures with Turkistan Global Services Sdn Bhd (TGS) to form a new entity, Malaysian Turkistan Travel Sdn Bhd (MTT), in the purpose of exploring travel business opportunities in Turkistan. In this entity, MTSB holds 40% of the shares whereas the others held by TGS. However, there was no progress after the forming of MTT. He recalled that his friend, Norehan who had worked in MTT before. She told Mr. Idris that the company may have been established under fraudulent circumstances and the staff’s morale was very low due to late salary payment.
Therefore, Mr. Idris decided to have a detailed investigation on MTT by outsourcing to external auditor, Mr. Agoos Bagoos. During investigation, Agoos found out that MTSB only had a few staff and the company operations were severely curtailed due to lack of funds. Besides, there were no relevant documents related to investment in MTT and MTSB did not have any effort