IBRA retains troubled Andersen as auditor

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.