To General Manager The Gurney 18 Persiaran Gurney 10250 Georgetown Pulau Pinang (Attn: Mr FC Chong)

22July2012

The Gurney - Audit Queries Further to our review, listed below are the queries, of which we require your urgent and immediate response on the matters raised.
1. Unoccupied rooms at 36th Floor Presidential Suites Nos. 3601 and 3602 Junior Suites Nos. 3603,3604,3605,3606 and 3607 Upon inspection, we have found that these rooms were not rented out although they are fit for sale albeit with minor uplifts. Failing to render these rooms saleable to clients would incur losses to the hotel revenue. We require your explanation on the matter. Priorities Urgent and Immediate Response 2. Retail outlets (inside) 1 unit near Coffee House 1stFlr, 1 unit open retail near Reception counter Lobby area and 1 unit Limousine desk near side door Lobby area It has come to our attention that there were these units were not accounted for as retail tenants. We require you to provide us with explanation and the tenancy details as soon as possible. Priorities Urgent and Immediate Response 3. Retail outlet(Gurney Podium) 1 unit (next to Starbuck) unaccounted for It has come to our attention that this 24 hours restaurant under the name Kapitan was not included in the list of tenants having tenancy agreements with GW Global SdnBhd (as per list provided to EPF). We require you to provide us with explanation and the details as soon as possible. Priorities Urgent and Immediate Response 4. Limousine service Upon scrutinising the documents, we found that the claims made by the limousine provider and amounts collected by the hotel and paid to the provider were made back-to-back, i.e. services provided were bringing no additional revenue. We require your explanation on the matter as soon as possible. Priorities Urgent and Immediate Response