By accident rather than design this writer found himself not once but twice a customer of Sir Michael Kadoorie and his CLP Group's Energy Australia Ltd (EA). EA is CLP's wholly-owned Australian subsidiary.
Tuesday, September 3, 2019
On both occasions the first being in 2008, the second in the recent past, over-billing was the issue.
In 2008 EA laid blame on the meter reading contractor, on the second a query about over billing resulted in a credit being offered, and then explained away as, in fact, a likely under billing. The credit however remained, as a gesture of goodwill.
All this piqued the curiosity of this writer, given his many years of reporting on South East and East Asian companies, like CLP and so a query was sent first to EA's CEO Catherine Tanna.
The query was simply this: how did EA account for under and over billing, and what provisions did it make for these issues. Ms Tanna refused to provide an answer to that simple question. The same query was then sent CLP in Hong Komg,given the implications for CLP's consolidated reports but again, answers to the simple query was refused.
What has been received however are a number of emails from EA's PR department which have not addressed the accounting issues.
In light of the above, questions now arise as to the quality of the earnings reported in CLP's consolidated financial statements. published to the HKEX and shareholders. These issues add to the matter of the consequences for EA and CLP arising out of its closure of the Wallerawang power station in Lithgow, NSW (see story below).
TO BE READ WITJ
Tuesday, September 3, 2019
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