SG wraps up Semen Padang audit with negative adjustment<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
State-owned PT Semen Gresik (SG), the country's largest cement
\nproducer, has completed a forensic audit on its subsidiary PT
\nSemen Padang, with possible losses resulting from irregularities
\ncommitted by the previous management.<\/p>\n
SG corporate secretary Soebagyo told The Jakarta Post on
\nTuesday that the company's auditor PricewaterhouseCoopers (PwC)
\nhad just concluded the forensic audit for Semen Padang's 2002
\nfinancial account, and would later consolidate it with the SG
\naccount.<\/p>\n
"The audit (result) was presented to the management of Semen
\nPadang on Tuesday. There will be a fund provision to cover losses
\nresulting from untraced assets, following an act of rebellion by
\nSemen Padang's previous management," said Soebagyo.<\/p>\n
Soebagyo refused to disclose the amount of the provision or
\nthe value of lost assets, but SG president director Satrio has
\npreviously said the company would allocate some Rp 250 billion
\n(US$27.7 million) to cover possible losses in Semen Padang.<\/p>\n
Soebagyo said the company was still in the process of
\nconsolidating the result of the forensic audit of Semen Padang's
\n2002 and 2003 financial accounts.<\/p>\n
The publicly listed SG would probably disclose the audit to
\nthe public in mid November after it finishes inserting the Semen
\nPadang accounts into SG consolidated audited financial reports,
\nand would hold a shareholders meeting on Nov. 30 to discuss the
\naudit, he said.<\/p>\n
Shareholders of the East Java-based SG refused to approve the
\ncompany's financial accounts in July, pending the completion of
\nthe forensic audit of the Sumatra-based Semen Padang.<\/p>\n
Semen Padang assets and net profit account for 26.77 percent
\nand 16.75 percent of SG's total assets and net profit,
\nrespectively.<\/p>\n
The government controls 51 percent of SG, Mexican cement giant
\nCemex SA owns a 25.5 percent stake and the remaining 23.5 percent
\nis held by the public.<\/p>\n
PwC has issued a disclaimer for SG's 2002 and 2003
\nconsolidated financial accounts due to the unaudited financial
\nfigures from Semen Padang.<\/p>\n
Because SG's financial accounts are incomplete, the government
\nhas also decided to delay its plan to change the composition of
\nthe company's current management until the next shareholders
\nmeeting.<\/p>\n
The forensic audit was launched to detect possible
\nirregularities committed by the previous management of Semen
\nPadang, which was replaced last year.<\/p>\n
There had been rumors that about Rp 550 million (US$58.5
\nmillion) of Semen Padang's assets, which are valued at about Rp 2
\ntrillion, was pillaged by the previous management, which had
\ndemanded that the West Sumatra-based unit be separated from SG in
\na protest over the government's plan to divest more shares to
\nCemex. That demand received the support of some local
\npoliticians.<\/p>\n
The publicly listed SG has been facing difficulties in
\nfinalizing its 2002 financial report, which in turn has affected
\nthe completion of its 2003 report, due to problems at Semen
\nPadang.<\/p>\n
For months the new management team at Semen Padang could not
\nenter the company's headquarters due to a blockade by the old
\nmanagement team. It was only in September last year that the new
\nmanagement was finally able to gain access to the headquarters.<\/p>\n
Many believe that during the blockade, the old management
\ndestroyed or stole some of the company's asset records.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/sg-wraps-up-semen-padang-audit-with-negative-adjustment-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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