Apr 28th 2010
Ernst & Young and PricewaterhouseCoopers have declared that they no longer maintain business relationships with Iranian firms.
Their statements follow KPMG’s decision to cease all accounting activities with affiliates in Iran. These decisions have changed the risk equation for all public companies. United Against Nuclear Iran (UANI) calls on all public companies to disclose their Iran business in their regulatory filings to ensure compliance with U.S. Securities laws.
“Now that the world’s leading auditors have made clear that doing business in Iran is too great a risk, no responsible company should work in Iran,” said Mark D. Wallace, UANI president ambassador, regarding the responses from E&Y and PwC. “All public companies must disclose any and all business activities, including through foreign subsidiaries, in this dangerous country.”
In a letter dated April 7, UANI called on PwC to clarify its relationship with one of Iran’s largest accounting firms, Agahan & Co. PwC listed Agahan & Co. on PwC’s Web site as a “cooperating firm” with offices located in Iran.
In response, PwC wrote that:
“At one time, the Middle East member firm of the PWC network had a cooperating firm relationship with Agahan & Co. However, that relationship expired last year and has not been renewed…In any event, neither PWCIL nor any PWC member firm currently has a cooperating firm relationship with Agahan & Co…Please note that the link to the PWC Web site included on the UANI Web site is to an out-of-date Web page. The correct and current list of offices on the PWC Web site does not include any mention of Agahan & Co. or Iran…We have removed the outdated link to which you cite, as it is inaccurate, and we appreciate your bringing this inaccuracy to our attention…PWCIL [and PWC US] does not maintain an office or other business presence in Iran, has no relationship with Agahan & Co., and does no business in Iran.”
In a letter dated April 7, UANI called on E&Y to clarify its relationship with one of Iran’s largest accounting firms, Tadvin Co./Tadvin Management Consultants. E&Y’s Web site listed Tadvin as E&Y’s Iran based affiliate.
In response Ernst and Young wrote that it:
“[E]rroneously listed this firm in an outdated ‘Members and Affiliates’ list previously posted on our Web site, EY.com. In reality, Tadvin ceased to be a member in 2001. This list was corrected and replaced in February 2010…For the avoidance of doubt, Ernst and Young does not have an office, member firm, or affiliate in Iran.”
UANI thanked E&Y and PwC for their responses and clarifications.