Summarecon denies conflicting reports

Summarecon denies conflicting reports

JAKARTA (JP): Publicly listed PT Summarecon Agung has denied
it published conflicting financial reports on its performance.

A legal representative of Summarecon, Denny Kailimang, said
yesterday that financial statements audited by Johan and Malonda
and by KPMG Hanadi Sudjendro were valid and made for different
purposes.

"Johan and Malonda was assigned for Summarecon's internal
purposes and KPMG was assigned on a routine basis," he said.

Johan and Malonda said in a statement yesterday that the
difference in the two financial statements was due to the
different nature of the tasks and consequently the use of
different accounting standards.

Johan and Malonda was engaged to audit PT Summarecon's two
subsidiaries PT Swaraeka Prasetia and PT Sawarama Jaya for the
period from Jan. 1 1996 to Aug. 31, 1996.

"The audited financial statements were intended to serve as a
basis by which the shareholders of those subsidiaries could
determine their financial positions in case they were to be
liquidated," the statement said.

It said the firm used International Accounting Standard in
their assessment.

Media reports said KPMG's consolidated financial statement for
the publicly listed property developer Summarecon did not include
a Rp 70 billion loss suffered by its subsidiaries, PT Swaraeka
Prasetia and PT Swarama Jaya.

Denny said the report by KPMG Hanadi Sudjendro included the
two subsidiaries' loss in the other expenses section of
Summarecon's 1996 consolidated financial statement.

KPMG said that Summarecon recorded a net profit of Rp 38
billion in 1996.

Denny said Summarecon would sue whoever leaked the report
audited by Johan and Malonda. "Whoever leaked the report intended
to discredit Summarecon," he added.

Denny admitted that based on its audit, Johan and Malonda
found the firms had suffered a loss of Rp 70 billion (US$29.16
million).

Denny said that problems arose for Summarecon when PT Swaraeka
Prasetia's shareholders disagreed on whether to develop West
Jakarta's Centrepoint Plaza.

PT Surya Dewata, which owns 35 percent of PT Swaraeka
Prasetia, wanted the project to become a shopping complex, while
Summarecon Agung and Atiga Swakerta which own 25.33 percent and
39.67 percent respectively, wanted an apartment and office
building.

"The shareholders have different views on it," Kailimang said.

Centrepoint Plaza was formerly owned by Surya Dewata, but the
firm was unable to develop it because of financial problems.

Summarecon then set up a joint venture, PT Swaraeka Prasetia,
to develop the property project. (09)