Telkom will not be able to meet SEC deadline<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Publicly listed telecommunications firm PT Telkom said on Monday
\nit would not be able to resubmit its 2002 financial report on
\nschedule as required by the U.S. Securities & Exchange Commission
\n(SEC).<\/p>\n
Such a failure could mean the company will be delisted from
\nthe New York Stock Exchange (NYSE). Telkom shares are listed on
\nboth Jakarta and New York exchanges.<\/p>\n
\"After speaking with our new auditor PwC
\n(PricewaterhouseCoopers), it is absolutely clear that Telkom will
\nnot meet its filing deadline ... even with a 15-day extension,\"
\nsaid Telkom head of investor relations Rochiman Sukarno.<\/p>\n
Telkom has been ordered by the SEC to resubmit its 2002
\nfinancial report after an earlier version was rejected because it
\nwas audited by a local accounting firm which is not registered in
\nthe U.S. or with the SEC. Telkom was given until June 30
\n(yesterday) to send in a new one, but that deadline can be
\nextended until July 15 if necessary.<\/p>\n
Telkom has run up against difficulties in fulfilling the SEC
\ndemand as many of the major international accounting firms cannot
\naudit the Telkom accounts due to conflicts of interest.<\/p>\n
The company last week finally appointed PwC to audit the
\nfinancial report, but has said that the audit could take up to
\nthree months to complete.<\/p>\n
Even with the extension, it seems Telkom will not fulfill its
\nobligations to the SEC.<\/p>\n
\"... No further extension is possible, and our new report will
\nbe late,\" Rochiman said.<\/p>\n
The press release did not go into detail about the
\nconsequences of failing to meet the SEC deadline, but earlier
\nreports said that this may cause the company's shares to be
\ndelisted from the NYSE.<\/p>\n
Telkom, which is 51 percent controlled by the government, has
\nhired New York law firm Skadden, Arps, Slate, Meagher & Flom LLP
\nto assist it in talks with the SEC.<\/p>\n
According to the initial version of the 2002 finance report,
\nTelkom made a net profit of Rp 8.34 trillion, nearly double the
\n2001 result.<\/p>\n
Telkom shares on the Jakarta Stock Exchange closed 0.5 percent
\nhigher on Monday at Rp 4,625 on continued buying from investors
\nfollowing last week's announcement of the PwC appointment.<\/p>\n
Telkom shares had fallen by 8 percent since news about its
\nauditing problems broke on June 12, and its current price remains
\nbelow its June 11 close of Rp 4,675.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/telkom-will-not-be-able-to-meet-sec-deadline-1447893297",
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"sponsor": "Okusi Associates",
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