ANNUAL REPORT

26Middle East Development Singapore ltdannual report 2007CORPORATE GOVERNANCESTATEMENT(ii)(iii)(iv)(v)(vi)(vii)to discuss with the external auditors any problems or concerns arising from their interim and final audits, and any other matterswhich the external auditors may wish to discuss;to ensure co-ordination where more than one audit firm is involved;to monitor the scope and results of the external audit, its cost effectiveness and the independence and objectivity of the externalauditors and give recommendations to the Board and the Company in general meeting regarding the appointment, re-appointmentor removal of the external auditors;to ensure that the internal audit function has adequately resources and appropriate standing within the Company;to appoint any person(s) to carry out the internal audit function;to ensure that the internal auditor meets or exceeds the standards set by nationally or internationally recognized professionalbodies including the Standards for the Professional Practice of Internal Auditing set by the Institute of Internal Auditors;(viii) to review the quarterly, half-yearly and full year financial statements of the Company and the Group, including announcementsrelating thereto, to shareholders and the SGX-ST, and thereafter to submit them to the Board for approval;(ix)(x)(xi)to review interested person transactions (as defined in the Listing Manual) and report its findings to the Board;to undertake such other reviews and projects as may be requested by the Board or as the Committee may consider appropriate;andto undertake such other functions and duties as may be required by law or by the Listing Manual, as amended from time totime.Apart from the duties listed above, the AC is given the task of commissioning investigations into matters where there is suspected fraudor irregularity, or failure of internal controls or infringement of any law, rule or regulation which has or is likely to have a material impacton the Company’s operating results or financial position, and to review its findings.The AC is in the process of setting up a whistle blowing policy whereby accessible channels are provided for employees to raise concernsabout possible improprieties in matters of financial reporting or other matters which they become aware and to ensure that:(i)(ii)(iii)independent investigations are carried out in an appropriate and timely manner,appropriate action is taken to correct the weaknesses in internal controls and policies which allowed the perpetration of fraudand/or misconduct and to prevent a recurrence, andadministrative, disciplinary, civil and/or criminal actions that are initiated following the completion of investigations are appropriatebalanced and fair, while providing reassurance that they will be protected from reprisals or victimization for whistle-blowing ingood faith and without malice.The AC will meet with the external auditors, without the presence of Management, when necessary, to review the adequacy of auditarrangement, with emphasis on the scope and quality of their audit, the independence, objectivity and observations of the auditors.Having reviewed the nature and extent of non-audit services provided by the external auditors over the year being reported on, the ACis satisfied that the rendering of such services did not affect the independence and objectivity of the external auditors.In addition, all future transactions with related parties shall comply with the requirements of the Listing Manual. As required by paragraph1(9)(e) of Appendix 2.2 of the Listing Manual, the Directors shall abstain from voting in any contract or arrangement, or proposedcontract or arrangement in which he has a personal material interest.