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18-01-2013, 08:06 AM
(This post was last modified: 18-01-2013, 08:09 AM by corydorus.)
Probably blessing in disguise We still have this stock to invest.
Now KMC is more visible to investor.
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Didnt really read and comprehend the entire announcement.
But i think the impact was that the earnings was UNDERSTATED in the affected years right? since the employees siphoned the money out and booked in extra expenses...
Hence, there is no weaker profits or earnings, in contray its better earnings if they managed to recover the money.
However, it kinda points to weak internal controls in the company?
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Actually it is more like 20% if you factor in the stuff that was written off in 2010. Also for 'employee' to be able to enter into personal guarantees of such a sum and even authorise payments, he's got to be of a certain level in the company right? It's corruption at a rather high level, and it has been going on for years. Also no mention of disciplinary action or anything to prevent future reoccurrence...
Meanwhile in China, they straight out dismissed the employees despite the fraud being of a much lower amount. Haha, it pays to be well connected!
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Well.. Even big caps like banks have employee frauding in the past.
Somehow I always find subcontractor dodgy.
Heard a few subcon ran away with money
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Actually frauds will happen once in a while... What is more worrying is will there be more of such announcements there are not released?