At a hearing of the Disciplinary Tribunal of the Institute
of Chartered Accountants of New Zealand held in public
on the 3rd day of October 2006, at which the member was
in attendance and not represented by counsel, Sam Ming Chan, of Auckland, admitted the following particular and was found guilty of charge (1) and not guilty of charge (2).
Charges
THAT in terms of the Institute of Chartered Accountants of New Zealand Act 1996 and the Rules made thereunder, and in particular Rule 21.30, the member is guilty of:
(1) breaching the Rules of the institute (Rule 21.2(b)); and/or
(2) failing to comply with orders made by the professional conduct committee
Particulars
IN THAT:
In relation to a complaint from a client to the professional conduct committee, the member has failed to respond in writing to all the matters raised in the complaint within the timeframes set out by the professional conduct committee in its letters and/or emails of the 25th day of May 2006 and/or the 19th day of June 2006 and/or the 7th day of July 2006 and/or the 19th day of July 2006 and/or the 1st day of August 2006.
Reasons
The member admitted the particular and was found guilty of charge (1) and not guilty of charge (2). Taking on work that a member is unable for whatever reasons to complete in a competent and timely fashion reflects on the institute’s reputation. Non-response to the institute with regard to complaints is a serious matter. The institute suffers if
it is seen to be impotent in dealing with complaints. This was the member’s second appearance before the tribunal on similar charges. The tribunal had regard to the member’s contribution to the institute over many years, but for which he would be facing more serious consequences.
Orders of the Tribunal
(a) Pursuant to Rule 21.31 (c) of the Rules of the Institute of Chartered Accountants of New Zealand, the disciplinary tribunal ordered that Sam Ming Chan pay to the institute a monetary penalty of $8,000.00.
(b) Pursuant to Rule 21.31 (k) of the Rules of the Institute of Chartered Accountants of New Zealand, the disciplinary tribunal ordered that Sam Ming Chan be censured.
(c) Pursuant to Rule 21.33 of the Rules of the Institute of Chartered Accountants of New Zealand, the disciplinary tribunal ordered that Sam Ming Chan pay to the institute the sum of $3,814.00 (inclusive of GST) in respect of the costs and expenses of
the hearing before the disciplinary tribunal and the investigation by the professional conduct committee.
In accordance with Rule 21.35 of the Rules of the Institute of Chartered Accountants of New Zealand, the disciplinary tribunal directed that the decision of the tribunal be published in the Chartered Accountants Journal, the
New Zealand Gazette and the New Zealand Herald with mention of the member’s name and locality.
Right of Appeal
Pursuant to Rule 21.41 of the Rules of the Institute of Chartered Accountants of New Zealand which were in force at the time of the original notice of complaint, the member may, not later than 14 days after the notification of this tribunal to the member of the exercise of its powers, appeal in writing to the appeals council of the institute against the decision.
No decision other than the direction as to publicity shall take effect while the member remains entitled to appeal or while any such appeal by the member awaits determination by the appeals council.
Dated this 9th day of October 2006.
R. J. O. HOARE, Tribunal Chairman.