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Right of reply
Pricewaterhouse Coopers on tsunami audit and SLIC privatisation deal
Referring to our last week's story headlined "UN probe on tsunami auditors" (Late City edition) and "tsunami auditors in hot water" (Provincial edition), Pricewaterhouse Coopers says:

"Whilst we usually do not respond publicly to client-related matters due to rules on client confidentiality, we would like to clarify certain aspects of the article for the purpose of setting the record straight.

"Pricewaterhouse Coopers (PwC) is not the auditor for tsunami donor aid funds in Sri Lanka or any other country. Shortly after the tragic events of December 26 last year, PwC offered free services to the United Nations amounting to 8,000 professional services hours to assist the UN and participating agencies in their collective efforts to enhance transparency and accountability of the application of funds. The agreement between PwC and UN makes it clear that PwC is not providing an audit. These services are a part of PwC's commitment to the tsunami relief efforts, in addition to over US $ 3 million contributed collectively from the employees and member firms of PwC globally.

"There is also reference in the article to issues arising out of the privatisation of Sri Lanka Insurance Corporation Ltd. (SLIC). PwC are not the auditors of SLIC and have not been the auditors of SLIC in the past. This role has been undertaken by another firm of charted accountants. The Attorney General has therefore not requested audited accounts of SLIC from PwC.

"Moreover, our contract for the provision of services to the Government of Sri Lanka in connection with the privatisation of SLIC did not require us to undertake any audit or other such engagement. PwC strongly refutes any suggestion of negligent acts or wilful misconduct and will address any such issues at the appropriate forum.

"In conclusion we note that the article correctly reported that a former PERC employee has joined PwC as a partner. However, the offer to join PwC was made some months after she had tendered her resignation to PERC and with the full knowledge of PERC. There was no impropriety involved whatsoever and at no time has this been an issue."

Our reporter says:
Pricewaterhouse Coopers (PwC) says it is not the auditor for UN tsunami donor aid funds for Sri Lanka or any other country. Its own website states that the United Nations has an agreement with the accounting firm, PwC for " pro bono advisory service in the form of loaned professional expertise for tsunami specific UN projects ".Alright then, they are not the auditors, but the audit firm has an agreement to provide professional expertise.

PwC states that they are not the auditors for the SLIC (Sri Lanka Insurance Corporation). So, who said they were. The concluding paragraph notes that our last issue correctly reported that a former PERC employee directly involved in the privatisation of SLIC in which PwC was involved, later joined PwC as a partner. Whether this is an issue or not is probably not for PwC to say, but our readers.

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