SG wraps up Semen Padang audit with negative adjustment, Indonesia

SG wraps up Semen Padang audit with negative adjustment, Indonesia
Published: 20 October 2004

State-owned PT Semen Gresik (SG), the country’s largest cement producer, has completed a forensic audit on its subsidiary PT Semen Padang, with possible losses resulting from irregularities committed by the previous management.

SG corporate secretary Soebagyo told local press that the company’s auditor PricewaterhouseCoopers (PwC) had just concluded the forensic audit for Semen Padang’s 2002 financial account, and would later consolidate it with the SG account.

"The audit (result) was presented to the management of Semen Padang on Tuesday. There will be a fund provision to cover losses resulting from untraced assets, following an act of rebellion by Semen Padang’s previous management," said Soebagyo.

Soebagyo refused to disclose the amount of the provision or the value of lost assets, but SG president director Satrio has previously said the company would allocate some Rp 250bn (US$27.7m) to cover possible losses in Semen Padang.