AirAsia dismisses accusations by GMT Research

AirAsia Bhd's Audit Committee has dismissed the accusation of corporate governance abuses and condoning accounting gimmicks by GMT Research Ltd, a United Kingdom-based firm.

Of particular concern to the Audit Committee was the allegation of improper accounting for associate companies and that AAB's auditor, PricewaterhouseCoopers (PWC) was malleable.

In a statement here today, Audit Committee Chairman V Uthaya Kumar said: "We, the Audit Committee, will not comment on the analysis of the business of AAB.

"Suffice only to add that GMT, would not have been able to carry out such an analysis of the business, if there was insufficient disclosures in AAB's audited and quarterly financial statements."

Kumar also said AAB was of the clear opinion that it should consolidate its associate companies.

He added that the group for at least over 12 months, had a whole series of meetings with PwC, legal advisers, management of the associate companies and aviation regulators, to effect consolidation of the associate companies.

The Audit Committee also went into a detailed reponse to the accusations raised by GMT in respect of AAB and its accounting process.

Kumar said the Audit Committee hoped that statements are verified with those responsible before being put out in the market place to ensure that they do not unfairly tarnish the image of AAB, the Board of Directors, management and auditors.