License of Waskita Auditors recomended to revoked

State Ministry for State-owned Enterprises recommends the Department of Finance to revoke the licenses of the auditors auditing the period 2004-2007 financial statement of PT Waskita Karya (Ltd).
State Minister for State-owned Enterprises Sofyan Abdul Djalil revealed Waskita Karya had overstated its financial statements in order to pursue initial public offering (IPO).
Based on data, the auditors of Waskita's financial statement are Heliantono & Associates Public Accountant Office (the 2004 and 2005 financial statements) and Ishak, Saleh, Soewondo & Associates Public Accountant Office (the 2006 and 2007 financial statements).
According to him, Waskita Karya would realize its IPO after its restructuring was completed. The government has appointed the Asset Management Company (PPA) to inject IDR400 billion-IDR500 billion and restructure Waskita. In addition, Danareksa Sekuritas has been appointed consultant to the restructuring.
Corporate Secretary of PPA Renny O. Rorong explained the fund injection and return schemes were being deliberated by the company, the State-owned enterprise restructuring team, and the Department of Finance.
According to Renny, PPA had prepared several fund return schemes, such as the one using the amount of fund raised by the IPO and the company's cash flow.
"We have a fund injection of IDR1.5 trillion from the government. We can use the fund to meet the fund needed to restructure Waskita. However, the realization has to wait for the Department of Finance's and the state Ministry for State-owned Enterprises' approvals."
At the moment, Waskita cannot receive IDR500 billion in fund injection from PPA since the Department of Finance has yet given its approval.