An audit report commissioned by national carmaker Proton has criticised poor corporate governance in the past at the troubled company.

The Edge financial weekly cited a comprehensive report from PricewaterhouseCoopers which it said revealed, among other findings, that approval from the board of directors was only sought after decisions had been made or agreements signed by the management.

According to The Edge, the PricewaterhouseCoopers report says some projects were implemented without proper consultation and billions of ringgit was spent without in-depth discussions.

As far as 1996

The audit firm started preparing the report for the present Proton management in September last year, with the findings going as far back as 1996.

Tengku Mahaleel Ariff was Proton's chief executive from 1997 until he was ousted in July last year.

He oversaw the purchase of debt-ridden motorcycle maker Agusta for 70 million euro (now US$89.6 million) in 2004. After his departure, Proton sold Agusta to Italy's Gevi SPA for a token sum of one euro.

Mahaleel and Proton advisor and former prime minister Dr Mahathir Mohamad have strongly criticised the Agusta sale, demanding information on why it went ahead and saying their credibility is at stake over the deal.

Tengku Mahaleel could not be reached for comment.