Malaysia Building Hong Kong Request For Proposal raises very many accounting questions

by Ganesh Sahathevan

The Honourable
Mr. Lim Guan Eng

Minister of Finance, Malaysia

Born in December 1960, Mr. Lim holds 

a Bachelor’s degree in Economics from 

Monash University, Australia and is a 

qualified accountant

In March this year The Edge reported:

The disposal of a tower building in Hong Kong that houses the Consulate-General of Malaysia’s office was actually proposed during the previous administration, Finance Minister Lim Guan Eng told the Dewan Rakyat yesterday.

The sale was initially proposed to be undertaken via direct negotiations at the price of RM1.1 billion, he said, a lower price compared with the RM1.6 billion price tag that has now been achieved via open tender under the Pakatan Harapan government.

So, this Request For Proposal with regards the sale of the same building makes no sense:

REQUEST FOR PROPOSAL (PERB/T/1/2019)APPOINTMENT OF AGENT TO DISPOSE MALAYSIA BUILDING IN HONG KONG

 This Request for Proposal (RFP)  is offered to Estate Agents (hereinafter referred to as "Agent") who have sufficient knowledge of the law relating to property and conveyancing in Hong Kong (registered with the Hong Kong Estate Agents Authority) and comply with one of the requirements specified below:

 i. Malaysian registered Agent that has an office (subsidiary / associate / affiliate) registered in Hong Kong; or 

ii. Agent registered in Hong Kong and has office (subsidiary / associate / affiliate) registered in Malaysia; or

 iii. Malaysian registered Agent with Co-Agent registered in Hong Kong; or 

iv. Agent registered in Hong Kong with Co-Agent registered in Malaysia. Request For Proposal

https://www.treasury.gov.my/pdf/tender/Iklan_HK_Agent.pdf

If the deal has fallen through, Minister Guan Eng needs to say why.Lim's  March announcement means the sale,or at least the receipt of a deposit, needs to be reflected in Government accounts. If the deal fell through the entries need to be reversed, with an explanation in the notes to the accounts.

Further, the highly restrictive terms as to who can tender are ridiculous. Sales of this type can be easily advertised internationally by the Ministry Of Finance, and an offer accepted from the highest bidder.

Answers are required from all involved, 

END