IBRA retains troubled Andersen as auditor

The Jakarta Post, Jakarta

The Indonesian Bank Restructuring Agency (IBRA) said it would continue to use troubled U.S.-based accounting firm Arthur Andersen as one of its financial auditors, IBRA's communication division head Raymond Van Beekum said.

"Especially for the existing contracts, we will continue the partnership, as we wait for the final verdict by the U.S. court," he told reporters on Monday.

Arthur Andersen has been acting as financial advisor for various sales of assets under the supervision of IBRA since its establishment in 1998.

However, following a decision by the U.S. government to suspend business partnerships with the company due to criminal charges, many governments have been considering taking similar action.

Many Arthur Andersen units outside the U.S. have merged or are seeking to merge with other accounting firms to survive.

In March this year the U.S. government suspended new business dealings with one of the world's top five accounting firms, citing its alleged involvement in a criminal case related to the accounting report of U.S. energy giant Enron Corp.

Arthur Andersen, which audited Enron's financial reports, was convicted Saturday by a jury for the obstruction of a government inquiry into the firm which announced the bankruptcy late last year -- the U.S.'s largest bankruptcy in history -- amid reports of irregularities in its financial report.

Despite the legal problems being faced by Arthur Andersen, Raymond said IBRA had not yet made a decision whether to review its contract with the accounting firm, saying the legal process against Enron was still underway.

Arthur Andersen has appealed against the decision.