The Caisse de dépôt et placement du Québec is denying allegations of accounting manipulation, made in a book soon to be released by author Mario Pelletier.

The book, entitled La Caisse dans tous ses états, suggests that the Quebec pension giant’s results and financial statements have been subject to accounting manipulation. The author maintains that a number of assets, notably Vidéotron, were considerably depreciated at the end of 2002 in order to improve results in subsequent years.

In a statement, the Caisse pointed out that in February 2006, the daily La Presse published a retraction after making similar allegations.

The Caisse explained that its investments are evaluated through a rigorous, audited process, and all financial statements are prepared according to Canada’s generally accepted accounting principles. The statements are audited by the Auditor General of Quebec.

As well, the Caisse noted that when calculating returns, it complies with the Global Investment Performance Standards established by the Investment Performance Standards Policy Group and obtains a report from an independent auditor for this purpose.

“For the Caisse, the accuracy of financial statements is crucial and must not leave any room for ambiguity,” the statement read. “Alleging that the Caisse’s financial statements can be manipulated is not only false by is also likely to cause serious damage to the institution’s integrity, its processes and its employees, and to the confidence of its partners and its counterparts on financial markets.”

The Caisse has informed Quebec’s Auditor General of the allegations made in the book.

IE