Bapepam investigates Summarecon, accountants

Bapepam investigates Summarecon, accountants

JAKARTA (JP): The Capital Market Supervisory Agency is
investigating why two Jakarta accounting firms made conflicting
financial statements for publicly listed PT Summarecon Agung.

The agency's corporate finance bureau II head, Anis Baridwan,
said yesterday it was investigating PT Summarecon Agung and the
accounting firms, KPMG Hanadi Sudjendro and Johan and Malonda.

"We wrote to Summarecon, KPMG and Johan and Malonda asking
them to report to us," Anis said.

Media Indonesia reported Monday that a financial statement
audited by Johan and Malonda said PT Swaraeka Prasetia, which is
65 percent owned by Summarecon Agung, posted a Rp 70 billion
(US$29.16 million) loss as of August 31, 1996. It did not say
what period the financial statement covered.

The paper reported that a consolidated financial statement
audited by KPMG Hanadi and Sudjendro said Summarecon recorded a
net profit of Rp 38 billion for the 1996 financial year. KPMG's
statement did not record Swaraeka's loss in its consolidated
financial statement, it said.

Summarecon's technical finance advisor, Michael, was quoted by
Media as saying Swaraeka's loss was recorded in the other
expenses posted in the consolidated financial statement.

In the consolidated statement its total other expenses in the
1996 financial year, to Dec. 31, 1996, were Rp 21.65 billion, up
432 percent from Rp 4.06 billion in 1995.

Anis said the agency had not yet received an explanation from
any of the three parties.

A source told The Jakarta Post yesterday that Summarecon and
KPMG Hanadi and Sudjendro directors would report to Bapepam this
morning and hold a press conference afterwards.

The source said Summarecon and KPMG denied there were
differences in the financial statements.

"There are no conflicting financial statements. Even if there
are two, both are valid," he said.

Summarecon and KPMG executives were not available for comment.

The source said Summarecon might sue Johan and Malonda for
making the financial statement public.

"Johan and Malonda is not a public accounting firm," he said.

He said they were assigned to audit Swaraeka for internal
purposes, not to disclose its financial report. (09)