HONG KONG, April 7, 2013 /PRNewswire/ -- Mineralogy Chairman Professor Clive Palmer today said CITIC Pacific's decision to replace its long time auditor PricewaterhouseCoopers had raised serious questions about its modus-operandi and transparency.
Professor Palmer said the move to replace PricewaterhouseCoopers at the company's May Annual General Meeting after more than 20 years of service would cast doubt in the minds of investors over the future of the company.
"Why sack the auditor," Professor Palmer said. "Is it because the auditors required them to list their debt to us as a current liability in the end of year financial report? Or do CITIC's directors believe they are exempt from Hong Kong's laws and International Accounting standards?"
Professor Palmer said that it was hard to have confidence in the real financial position of CITIC Pacific in the wake of its latest decision.
"Our company is considering what to do with shares that we own in CITIC Pacific as no one can be assured of their real financial position," Professor Palmer said.
"The move to replace the auditors raises concerns about their real position with China Development bank and also cast doubt upon the truth of allegations it had made against Metallurgical Corporation of China Ltd (MCC) and its management."
Professor Palmer said he retained his confidence in MCC and its management.
"MCC has and continues to be a company which I and my companies believe acts according to the highest of standards," Professor Palmer said.
"It is a serious matter when auditors of 20 years are removed or pressured to resign from a public company. CITIC Pacific needs to clean up its act."