Section 18 — BANK SIMPANAN NASIONAL BERHAD ACT 1997

(a)

to carry out an audit of the accounts of the Bank; and

(b)

subject to subsection 19(4), to submit a report of such audit to the members of the Bank.

(2)

The report of the auditor referred to under paragraph (1)(b)

shall be made in accordance with section 174 of the Companies

Act 1965.

(3)

The Minister may, at any time, require an auditor appointed under section 17 to—

(a)

submit such additional information in relation to his audit as the Minister may specify;

(b)

enlarge or extend the scope of his audit of the business and affairs of the Bank in such manner or to such extent as the Minister may specify;

(c)

carry out any specific examination or establish any procedure in any particular case; or

(d)

submit a report on any of the matters referred to in paragraphs (a), (b) and (c), and the Minister may specify the time within which any of such requirements shall be complied with by the auditor and specify the remuneration which the Bank shall pay to the auditor in respect thereof.

(4)

The auditor shall comply with any requirement of the Minister under subsection (3) and the Bank shall pay to the auditor the remuneration of the auditor referred to therein.

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(5)

If an auditor appointed under this section, in the course of his duties as an auditor of the Bank, is satisfied that—

(a)

there has been a contravention of any provision of this

Act or that any offence which relates to dishonesty or fraud under any other law has been committed by the

Bank or by any other person;

(b)

losses have been incurred by the Bank which reduce its capital funds to an extent that the Bank is no longer able to comply with the requirements of the Minister under subsection 13(1);

(c)

any irregularity which jeopardizes the interests of depositors or creditors of the Bank, or any other serious irregularity, has occurred; or

(d)

he is unable to confirm that the claims of depositors or creditors are covered by the assets of the Bank, he shall immediately report the matter to the Minister.

(6)

The Bank, and any director, controller or officer of the

Bank, shall—

(a)

furnish to an auditor appointed under this section—

(i)

all information within its or his knowledge or capable of being obtained by it or by him; or

(ii)

any information which the auditor requires, to enable him to carry out his duties; and

(b)

ensure that all information which is furnished to the auditor, including information furnished under paragraph

(a)

, is not false or misleading in any material particular.

(7)

The Minister may at any time examine the books, other documents, accounts and transactions of any person which was at any time, or is, an auditor of the Bank and for the purposes of such examination, the Minister shall have and may exercise all such powers as he has or may exercise in relation to an examination of the Bank under this Act.

(8)

Any person who fails to comply with subsection (4), (5) or

(6)

shall be guilty of an offence and shall on conviction be liable to a fine not exceeding three million ringgit or to imprisonment

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Bank Simpanan Nasional Berhad for a term not exceeding three years or to both, and in the case of a continuing offence, to a further fine not exceeding three thousand ringgit for each day during which the offence continues after conviction.

Financial statements to be submitted to Minister