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)