Memo - Ministry of Finance Suspend the Public Accountant Justinus Aditya Sidharta

Ministry of Finance Suspend the Public Accountant Justinus Aditya Sidharta

Ministry of Finance RI as of the date of November 28, 2006 has suspended the license of Public Accountant (PA) Justin Aditya Sidharta for two years. Sanctions are given for a violation on Public Accountants Professional Standards (SPAP) relating to the Audit Report on the Consolidated Financial Statements of PT Great River International Tbk In 2003.

The license suspension by the Minister is a follow up on the Decree of Judicial bodies Profession Public Accountants (BPPAP) No. 002 / VI / SK-BPPAP / VI / 2006 dated June 15, 2006 that suspend Justinus from the membership of the Association of Indonesian Accountants Compartment Public Accountants (IAI-KAP ). This is in accordance with the Decree of the Minister of Finance No. 423 / KMK.06 / 2006 on Public Accountant Services as amended by the Minister of Finance Regulation No. 359 / KMK.06 / 2003 stating that the Public Accountant penalized license suspension if the Public Accountant obtained their sanction of freezing the membership of IAI and or IAI-KAP.

As is known, since last August, Bapepam investigate public accountants who audited the Great River  financial statements of fiscal year 2003.  Bapepam had found indications of a conspiracy in the manipulation presentation of financial statements. 

To avoid tax penalties

Responding to these allegations, the public accounting firm of Johan Malonda & Partners denies conspiracy in the audited annual financial statements of PT Great River. Deputy Managing Director Johan Malonda, Justinus A. Sidharta, stated, during the audit of PT Great River, it didn’t find their mark- account sales of bond funds or irregularities. But he acknowledged of the accounting method applied to the Great River different to the existing provisions. "We audit based on data provided by the client, "said Justinus.

According to Justinus, Great River received many orders for the manufacture of garments from abroad with material standard from the buyer. So Great Rivers imply removing the apparel manufacturing operating costs. But when orders are shipped abroad, the export value listed by summing material prices standard, Accessories, cost of labor, and corporate profits. Justinus declare, this models as it aims to avoid the recording of the alleged dumping and tax penalties. Because, he says, the balance of the net profit is no different from that received by the company. He guessed that's what triggers the suspicion inflate the value of sales. Thus interpreted as deliberately hiding information.