BPK probes Gresik's past acquisitions<\/p>\n
Sari P. Setiogi, The Jakarta Post, Jakarta<\/p>\n
The Supreme Audit Agency (BPK) is launching an investigation
\ninto the past acquisition of PT Semen Padang and PT Semen Tonasa
\nby the country's largest cement maker, PT Semen Gresik, a move
\nthat may further complicate problems at the publicly listed firm
\nand deter investors.<\/p>\n
Amrin Siregar, a senior auditor at BPK, said that the
\nacquisition might not be lawful because it was not supported by a
\ngovernment regulation.<\/p>\n
\"According to Law No. 9\/1969 and government regulation No.
\n12\/1969, every asset allocation in a state-owned company should
\nbe followed by a government regulation,\" he said.<\/p>\n
He did not explain why the problem had come to light after so
\nmany years, but said that since Semen Gresik, previously fully
\nowned by the government, became a publicly listed company in 1991
\n(it was the first state-owned company to do so), the firm had
\ndeclined to be audited by BPK.<\/p>\n
Amrin said that BPK had sought clarification from the
\nindependent accountant of Semen Gresik's 1995 financial accounts
\non why there was no explanation in the audit report about the
\nabsence of the required government regulation.<\/p>\n
He said that the audit agency was still awaiting a response
\nfrom the public accountant. He did not name the accounting firm.<\/p>\n
Semen Gresik acquired the assets of West Sumatra-based Semen
\nPadang and South Sulawesi-based Semen Tonasa (both were also
\nstate-owned firms) in 1995, creating the country's largest cement
\nproducer. Under the acquisition move, the government's shares,
\nworth Rp 1.1 trillion in Semen Tonasa and Semen Padang, were
\nconsolidated into Semen Gresik.<\/p>\n
In 1998, Mexican cement maker Cemex SA de CV, which is also
\nthe world's third-largest cement maker, acquired more than 25
\npercent of the shares in Semen Gresik. The government now owns a
\n51 percent stake, while the remainder is held by the public.<\/p>\n
The government had for years tried to divest more shares in
\nSemen Gresik to Cemex, but had failed due to strong opposition
\nfrom Semen Padang. This had also caused trouble for Semen Gresik
\nas it could not consolidate last year's profit from the West
\nSumatra subsidiary because the audit work could not be done at
\nthe time, amid protest from the old management of Semen Padang.
\nSemen Gresik has promised the audit work will be completed by
\nFebruary 2004, which does not please Cemex, as it wants the audit
\nto be finished by the end of this year.<\/p>\n
There have been rumors that Cemex is considering pulling out
\nfrom Semen Gresik due to the various problems.<\/p>\n
Elsewhere, Amrin said that BPK would also seek clarification
\nfrom Semen Gresik's accounting firm on a questionable liability
\nfigure in the 1995 financial report. In the report, a liability
\nworth Rp 581 billion (US$68.39 million) is shown, but the auditor
\ndid not give a clear explanation about it.<\/p>\n
He said that if the accounting firm continued to disregard the
\nBPK request, the agency would report the firm to the Ministry of
\nFinance and to its professional association.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bpk-probes-gresiks-past-acquisitions-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}