Petroecuador advancing in tender to appoint auditor

By Alexandra Valencia

QUITO (Reuters) – Petroecuador, Ecuador’s state-owned oil company, on Tuesday said it is looking to appoint an international auditing firm to put its accounts in order, and that the tendering process is supported by the Inter-American Development Bank (IDB).

The audit of the oil company’s accounts forms part of a $6.5 billion financing deal between the Andean country and the International Monetary Fund which finishes towards the end of this year, according to Energy Minister Fernando Santos.

Talking to a local media outlet on Monday, Santos acknowledged Petroecuador is not audited by an international firm and its financial reporting does not comply with international standards.

Petroecuador began a tendering process to appoint an auditor in August, it said.

“As the process is financed with international cooperation funds, the hiring must follow the guidelines established by the international organization,” the company added.

The auditing companies have until Nov. 10 to submit their tenders.

The attorney general’s office last week arrested seven people – including former public officials from Petroecuador and the Ministry of Economy – as part of an investigation into alleged corruption at the oil company.

Former Energy Minister Xavier Vera resigned at the end of October over a separate investigation into allegations that he took bribes in exchange for jobs at Petroecuador. Vera denies any wrongdoing.

(Reporting by Alexandra Valencia; Writing by Oliver Griffin; Editing by Lincoln Feast)