Of accountants, auditors and accountability

A new world order is likely to emerge after all the reshuffling of cards in the corporate world as well as in bilateral ties between nations. Let's hope that the way ahead to economic recovery and rebuilding of economies will not take too long. The job cuts by the big corporations have been swift and furious. Individuals who have over extended themselves financially will find themselves in a state of shock if not panic. There are some basic lessons to remember, such as cultivating the habit of saving during good times and keeping within one's budget, and constantly reminding ourselves that not every day is a sunny day. One good principle to follow is to ask yourself how can you work you way to become financially independent of your full time job?

In the coming weeks as the East celebrates the Lunar New Year, the time for festivities is over for the West as they try to find their foot back on the slippery ground. Hopefully the harsh weather they are facing now will be over before long and by April Barack Obama's 100 days in office will be over. The world will then know whether the new US President is able to make the change that he talked so much about.

One change that is not on his cards is the need to make corporate auditors more stringent and accountable in their work. I often wonder with all the accounting audits being carried out throughout the corporate world, how did all the frauds and scams escape them? It frightens me to think after years of scrutiny by internal and external auditors, the frauds were allowed to continue under their eyes. What's the purpose of audits then, if they are not able to detect the very task they are assigned to do. Should the entire syllabus for the training of accountants be reviewed. Should the relationship between auditors and clients be reviewed so that the former can be truly independent in their scrutiny of accounts without worrying about whether their contract will be renewed in the next fiscal year? Millions of dollars are lost...many lives are shattered...not to mention the many jobs that are lost because someone out there didn't do a good job of what they were paid to do as professionals.

May Man Be Kinder in 2009

Alas the curtains will come down on 2008. For some more resolutions will be made only to be broken yet again as the clock ticks past the midnight hour of 2009. Indeed many will be reflecting on the days and months that have gone by. For those who have put in effort to do something useful, they may be looking back with fulfilment. Others, it may well be precious time wasted as they find themselves left by the wayside while the world moves on.

Certainly there were many challenges in these past months, especially in the last quarter of this year. The not altogether unexpected economic downturn shattered the dreams of many. Jobs were lost, opportunities missed and the luckier ones only lost their year-end bonuses. The painful tragedy of Dec 2004 is still remembered when the tsunami killed thousands and left many more homeless. Obituaries still fill the newspaper pages to remind of the passing of loved ones. Indeed 2008 may also be remembered as the year where names like Nobel Prize British playwright Harold Pinter and US singer and dancer Eartha Kitt will be missed. Then there are the many others, unknown but fallen heroes who died in the course of their line of duty in Afghanistan, Iraq, Bosnia, Pakistan, India including civilians killed because of senseless bombings by terrorists. Even as this blog is written, more are being killed in the Middle East as they will also be in the South African continent such as Zimbabwe, Sudan and Somalia.

Mankind is known to be great builders of cities and nations. Mankind is also known for its great civilisation, artistic talents and ingenuity in inventions. If the present carnage continues, mankind may well be better known for its work of destruction and mayhem. Let's hope that 2009 will bring good sense and civility to the leaders of the powers so that mankind can continue to build on its good reputation. That there will be greater kindness, concern and goodwill to all mankind.

War - a timely boost for nations in recession?

Once again the Middle East has become a battleground. Both sides involved in the confrontation are blaming each other. Understandably it is not easy to keep the peace in the Middle East, given the politics in the region. I recalled reading the Bible and the many hardships that the people had to endure because of their disobedience to God. I am here not to preach but to ask whether there is sufficient will power among the political leaders to influence their people to work towards peaceful co-existence. Biggers nations with different political ideology can sit and negotiate, why can't two neighbours?

It is indeed sad that barely days after celebrating Christmas, brightly-lit decorations, jingle bells, sleighs, Santa Clauses and carolling are replaced by the blazing of rockets, missiles, tanks and screaming jet fighters. The pictures on the television show carnage, destruction and death. The continuous replaying of these scenes do no more than to incense the people as they watch the same television footage played over and over again. It's called "Breaking news..." though the footages are more than 24 hours hold.

Then I ask myself where is the leadership in the Arab world? Or is there no leader who can influence the region because everyone has his own vested interest to see the other weakened. That countries in the region are fighting proxy wars using the Palestinians and the Isrealis as the pawns. Someone pointed out that there is indeed a benefit coming out of this whole conflaguration. Wars will generate demand for oil, weaponry, munitions and so forth, not to mention the post-war rebuilding of towns and cities. So the beneficiaries will only indulge in empty rhetoric so long as the wars don't come anywhere close to their borders. The war therefore becomes a much needed booster to create demand and bring economies out of a recession.

Stay healthy, stay away from the pills

A group of US researchers has raised an alarm over that older adults in the US who are popping prescription pills, over-the-counter drugs and dietary supplements in record numbers. Their concern is that these combination of drugs could be deadly.
Apparently more than half of US adults who aer 57-85 years old are using five or more prescription or non-prescription drugs. Added to this, 1in 25 are taking them in combinations that can result in dangerous drug interactions. With rising medical costs, it is not surprising that people are doing pill popping not only for self-medication but also in the believe that taking supplements would keep themselves healthy. With the Internet awashed with all kinds of advice on how to cure and how to keep healthy, and there is no lack of blogs and other discussion groups on health care, it is not surprising that people are just doing what they are doing. Indeed we are in the realm where little knowledge is dangerous.

If a study is done in countries in Asia, the result would not be far different. Perhaps the only distinction would be that those in Asia would add herbs and other local medication to the "prescription". It is not uncommon for example to find people using a combination of Western drugs and Chinese herbal medicine. Some hospitals that practised Western medicine seem to have succumbed to the popularity of Chinese medicine and allowed the non-traditional clinics to be set up. Even some doctors took up traditional Chinese medicine to augment their knowledge and prescribe a combination of both. While undoubtedly there may be merits in some TCM, the problem is that TCM medication are not scientifically tested. Hence there are no proper checks and balances on what's contained in the medication and their efficacy when given to a sick patient.

Public education is important if this pill popping culture is to be checked. The medical profession should debunked the myths floated by some who touted their pills are the ultimate protection for all illnesses. TCM should be scientifically tested and where appropriate they should be given the due recognition. This way the population would be better protected. And lastly, we should look into how to keep medical costs affordable. All the rhetoric about altruism and helping the poor means nothing if at the end of the day the medical bills paint a different story. For example I am told if you aren't able to afford a $100, don't think of visiting the public hospital for an emergency consultation!

My Wish for a White Chritmas

Joy to the World - calls out the carollers along busy Orchard Road in Singapore. The branches on the trees swayed as if in response to the call, as the dangling bright lights littered the tree tops. Groups of tourists on open double-decked buses added even more glare to the over-exposed lighting as they popped their flashes with their cameras. Traffic came to a near standstill, as merrymakers, holidaymakers and all others thronged the two-kilometre stretch of one-way traffic all the way towards the city front where Suntec City is located.

I took courage and joined the bustling crowd of merrymakers, inching my way through to soak myself into the Christmas spirit. Though the crowds were just as thick as it was in previous years, the mood was somewhat sombre. Merrily people still posed for photographs at the various stalls set up by Christian groups to promote the message of the birth of Jesus Christ. The retail outlets competed with their giant Christmas trees and colourful decors. One other sign that a shopper wouldn't miss when visiting the retail malls is the sign that flount the word: Discount or Sale. Such sales gimmicks were unnecessary in the better years. Sales were only held after Christmas, on Boxing Day.

Christmas was a special time for me when I was about 10 years old. A stopover at the Robinson's then in the heart of the business centre at Raffles Place was a must. I would spend a good hour alone musing about the toyland, constantly on the look out for the sales lady for fear that she would notice that I was only there to play with the toys. The huge electric train set, complete with tunnels, stations and train crossing was certainly a key attraction for many children.

Today, visit Robinson's is a far cry from that good ole days, as they called it. Even the background music is not a traditional carol but a jazz tune sprinkled with the jingling of bells. The decor and the atmosphere certainly reflected a changed era...and indeed Robinson's has changed in ownership. To satisfy my thirst for some good traditional Christmas carols, I ventured out to the rest of Orchard Road, and I heard someone singing the line "...may your days be merry and bright". And I thought how I wish all Christmases may be white!

Obama's Young Team

The team of key office bearers announced by President-elect Obama is indeed something to watch when the New Year unfolds. The average age is about 55 years and this group will certainly bring a new perspective to the White House. In fact this is about the first time that the White House will be steered by such a large group of post-War leaders whose experiences and perspectives will hopefully bring a new freshness into US role as a leader in world politics.

Hitherto the US has been brandishing its might and roared at anyone who gets in its way. No doubt the US has shown its willingness to sit on the negotiating table in several instances, and North Korea nuclear talks is one good example, but its patience often fall short after a while. Dealing with others in the past by dangling aid and other incentives might have worked, but not so for Pyongyang whose pygmied leader seems to apply a different brand of negotiation skills. The mainland Chinese were famous to the point of notoriety for delaying in coming to an amicable conclusion. They would procrastinating in the hope that the opposite party would eventually give in out of frustration. The Koreans are worse. They don't show what they are willing to put on the table and you end up getting frustrated for coming to the table to talk. Suffice to say, there would have been Think Tanks who would have studied the psychology and the techniques of the Korean negotiating style to be able to advise the US negotiators a key that would fit the hole to open up Pyongyang. However, so far this seems to have eluded the Americans. I had occasion to negotiate in a trade dispute with a South Korean. Certainly there is a difference between the northerners and the southerners, but if the techniques adopted by the south is anything to come by, I can understand the difficulties face by the US nuclear negotiators. The stand taken by my counterparty was that their position was non-negotiable, and there was no such thing as a win-win outcome.

Perhaps Obama's young team would have some tricks up their sleeves that may well undo what the outcoming US administration has not succeeded over the past years. Or, am I putting too much expectations on Obama's new team...

Putting a stop to high seas piracy

The decision by the UN to allow the pursuit of Somalian pirates on land is not altogether unexpected. These pirates are no more than a band of robbers and reminded me of the movie Death Wish, where marauding bands of gangsters terrorise innocent people. The action being taken by various governments have so far had very limited impact in curtailing their activities. The hide-and-seek game in a vast open sea makes it very challenging for them. This is one crime which requires the concerted effort of all peace-loving nations and yet the coming together of governments has been somewhat slow. NATO, India, the US have made their presence in the area, and the latest is China is likely to send their navy to protect their own vessels. Sadly there seem little or no interest from the countries in the South African continent - not even the Arab states though one Saudi tanker is still being held hostage at the time of writing.

The way to deal with the pirate is perhaps to let force meet with force. Blasting the pirates out of the waters will be a good deterrance to others. Arresting the pirates and bringing them to the courts may be a waste of good money for bad. The system of administration in Somalia may well see these culprits back onto their boats even before the change of seasons. What governments should do is to confiscate the money from these pirates and donate them to the needy and suffering in the South African continent. I find it almost like reading the comics each day when I open my newspapers to find news about pirates seizing ships, plundering and robbing almost at will. If nations can't tackle this somewhat "localised" problem, there isn't much hope to get even more nations together and try to tackle an issue like global warming.