Global's auditors may lose licenses over suspected accounting cover-ups
Global's auditors may lose licenses over suspected accounting cover-ups
Rendi A. Witular, The Jakarta Post/Jakarta
The government may revoke the operating license of accounting
firms that audited the financial accounts of troubled Bank Global
Internasional if they are proven to have committed irregularities
in the process.
Director general of financial institutions Darmin Nasution
said an investigation into auditor Joseph Susilo Accountant was
under way, over allegations that the office had covered up
irregularities in Gobal's 2003 financial account.
"The auditor passed Bank Global's financial accounts, despite
the existence of fictitious securities in the bank since last
year.
"We may revoke its license if (the auditor) is proven to have
been has involved in the crime," Darmin said.
In its "unqualified" positive opinion of Bank Global's 2003
financial report, auditor Joseph Susilo found no irregularities
in the account and said all figures presented in the report were
accurate.
The accounting firm has been investigated by the Directorate
General of Financial Institutions since September, Darmin said.
The result of the inspection and the possible punishment would be
make public in mid-January, he said.
BI temporarily suspended the ailing Bank Global's operations
earlier this month for 30 days after alleged fictitious lending
activities and other banking fraud came to light.
Bank Global's capital adequacy ratio (CAR) has dropped into
negative territory, and its management has been accused of
forging securities certificates and other commercial papers to
increase its CAR.
The CAR measures the financial health of a bank, and must be
at a minimum level of 8 percent.
Darmin said the directorate might also investigate Thomas,
Trisno, the Hendang & Partners accounting firm, which audited
Bank Global's 2002 financial account. If the firm was proved to
have been involved it would also lose its operating license.
Over the years, the directorate has a record of handing down
tough punishments to errant auditors. In August, it revoked the
license of an accountant that audited the now-defunct Bank
Asiatic and imposed a one-year suspension on the license of a
Bank Dagang Bali accountant.
The in-debt banks were closed in May after illegal
transactions involving bad loans worth Rp 1.2 trillion (US$133
million) were discovered.
In the Bank Global case, the government is also investigating
five securities houses over allegations they were involved in
making false statements to the central bank over the amount of
securities papers owned by the publicly listed bank.
Several reports said the five firms currently being probed by
the Capital Market Supervisory Agency (Bapepam) are PT Aldiracita
Corpotama, PT Interasia Securitindo, PT Madah Pacific, PT
Unisecurindo Abadi and PT Makefin Sekuritas.
The police have arrested 11 Bank Global employees for trying
destroy documents related to the case.