Ernst and Young and PWC Join KPMG in Declaring Themselves Free of Iran Business Ties

FOR IMMEDIATE RELEASE
April 26, 2010
Contact: Kimmie Lipscomb, [email protected]
Phone: (212) 554-3296
 

Ernst and Young and PWC Join KPMG in Declaring Themselves Free of Iran Business Ties.
UANI Calls on all Public Companies to Disclose Iran Business in Regulatory Filings.

New York, NY - Ernst and Young and PWC have declared that they no longer maintain business relationships with Iranian firms.  Their statements follow KPMG's laudable decision to cease all accounting activities with affiliates in Iran.  These decisions have changed the risk equation for all public companies.  UANI calls on all public companies to disclose their Iran business in their regulatory filings to ensure compliance with the U.S. Securities laws.

Commenting on the Ernst and Young and PWC response UANI President Ambassador Mark D. Wallace said: 

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. All public companies must disclose any and all business activities, including through foreign subsidiaries, in this dangerous country.

In a letter dated April 7, 2010, 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 website 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firm relationship with Agahan & Co...Please note that the link to the PWC website included on the UANI website is to an out-of-date webpage. The correct and current list of offices on the PWC website does not include any mention of Agahan & Co. or Iran...We have removed the outdated link to which you cite, as it is inaccurate, and we appreciate your bringing this inaccuracy to our attention...PWCIL [and PWC US] does not maintain an office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, 2010 UANI called on Ernst and Young to clarify its relationship with one of Iran's largest accounting firms, Tadvin Co./Tadvin Management Consultants ("Tadvin").  Ernst and Young's website listed Tadvin as Ernst and Young'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 Ernst and Young and PWC for their responses and clarifications. 

Click here to read the New York Times' coverage of this announcement.