The Port Klang Authority (PKA) allowed the cost of the Port Klang Free Zone (PKFZ) project to escalate as it did not have any business or financial plans to fall back on, with the PKA general manager who oversaw the project admitting she did know what a cash flow projection is.That was the conclusion of the Public Accounts Committee (PAC) following testimony by former PKA General Manager (GM) Datin Paduka OC Phang at parliament yesterday.
(http://www.theedgemalaysia.com/business-news/148580-oc-phang-doesnt-know-cash-flow-projection.html)
For Datin Paduka’s reference (not that she’s a reader of this blog), the definition of cash flow projection is a projection of the earnings of a company before accounting for depreciation, less taxes. The cash flow projection measures the cash generated from operations, excluding capital expenditure or working capital requirements. In a nutshell, it calculates how much cash the business will generate from doing what it does.
The Datin Paduka is the GM of The PKA, the highest ranking executive in the company; it is mind boggling to say the least that she is not familiar (to put it mildly) with cash flow projections. For the sake of corporate Malaysia, I hope she is the only one.
My questions are; did she lie about not knowing about cash flow projections? If it is true she did not know what cash flow projection is, how did she make financial decisions for PKA? Why wasn’t her “shortcoming” spotted or rectified during her junior executive years? Who is OC Phang?
I know a bit about cash flow projections, can I apply to be the Senior GM of PKA?
For Datin Paduka’s reference (not that she’s a reader of this blog), the definition of cash flow projection is a projection of the earnings of a company before accounting for depreciation, less taxes. The cash flow projection measures the cash generated from operations, excluding capital expenditure or working capital requirements. In a nutshell, it calculates how much cash the business will generate from doing what it does.
The Datin Paduka is the GM of The PKA, the highest ranking executive in the company; it is mind boggling to say the least that she is not familiar (to put it mildly) with cash flow projections. For the sake of corporate Malaysia, I hope she is the only one.
My questions are; did she lie about not knowing about cash flow projections? If it is true she did not know what cash flow projection is, how did she make financial decisions for PKA? Why wasn’t her “shortcoming” spotted or rectified during her junior executive years? Who is OC Phang?
I know a bit about cash flow projections, can I apply to be the Senior GM of PKA?
Unfortunately, the Datin Paduka is not the only senior management who’s not familiar with cash flow projections. I’ve known a few who can’t distinguish between cash and profit, and don’t know what & how to come up with cash projections.
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