PwC focuses on Poste Italiane

Poste Italiane’s auditor, PricewaterhouseCoopers (PwC), is looking into a swap set up three years ago by the Italian postal group. The auditor has asked to show losses worth €104 million in the group’s accounts. The use of speculative derivatives is now fairly common practice for companies, which are not required by current accounting standards to add them to the balance sheets. The auditors, however, are against this.

CEP – 11 March 04
Unanimous press reports state that the public prosecution in Rome is investigating accusations against Poste Italiane for falsification of the balance sheet. 104m euros are missing from the post’s cash balance. The investigators are also interviewing staff from auditors PriceWaterhouse. A representative of the prosecution authority said it was still unclear whether there was really money missing or there had been an accounting problem. In a first statement, Poste Italiane said the minus had occurred in connection with derivate operations. The post’s supervisory board has promised full co-operation. The investigation has dealt a hard blow to the Italian post, which had got back into the black in 2002 for the first time in 50 years (22m euros; CEP News 15/03) and aims to achieve a higher net profit in 2003. In addition, the government continues to consider plans for the privatisation and even floatation of the company in an urgent manner.