Chartered accountants to study Finas’ financial structure – Gobind

KUALA LUMPUR: The Communications and Multimedia Ministry will appoint at least two chartered accountants to study and report the new financial structure in efforts to enhance the financial system and accountability of the Malaysian National Film Development Corporation (Finas).

Its minister, Gobind Singh Deo said the appointment aimed to avoid any leakage or loss and problems of integrity and direct accountability occurring in future.

He said funds represented the most important asset to the national film industry and it must be ensured that the funds were channelled to those who were eligible and failure in doing so would have negative impacts on the industry.

“The Report of the AuditorGeneral on Aug 29, 2017 concerning the 2016 Finas Financial Report showed that the financial statement did not give a true and fair picture on the financial situation of Finas on Dec 31, 2016 and the financial performance and cash flow for the financial year concerned in line with the reporting standard specified,” he said at a media conference at the Parliament lobby, yesterday.

Gobind Singh said the report showed that the Finas accounting system was very weak and could not be accepted besides the lack of accountability for the very large sums of money such as the income tax totalling RM6,213,623.14 and RM3,246,004.49 for the 2006 until 2015 years of assessment and RM2,126,710.32 for the year 2016. “In addition, the accuracy of the bank balance of RM11,539,633; balance of advances and loan debtors of RM2,446,092 and RM3,043,356; and rental debtors of RM81,707 where the identity of the rental debtors could not be determined.

“The remaining miscellaneous debtors totalling RM146,107 and balance of credit amounting to RM12,687,897 which could not be determined, miscellaneous creditors totalling RM1,366,787 and RM30,175,063 which could not be determined; doubts on filming deposits amounting to RM18,450,900 and so on,” he added.

Gobind Singh said the matters reported must be investigated and the Finas' financial system must be reviewed so that the situation would not be repeated in future.

He said a new board for the Finas corporation had been appointed and would be announced next week.

“The board comprises individuals who have the experience and knowledge in the field of filming, artistes as well as accountants.

“I hope the new board can enhance the performance of Finas so that we can succeed in the industry not only in Malaysia but also at the international stage in future because the country had the ability and talent to succeed in the industry,” he said.

According to Gobind Singh, the ministry would take stern measures to improve the weaknesses in Finas so that the film industry could succeed in future.