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Independent Forensic Accounting Review Confirms ChinaCast Education Corporation’s Cash Balances

Courtesy of Benzinga.

ChinaCast Education Corporation (Nasdaq: CAST) today announced that the Audit Committee of its Board of Directors retained FTI Consulting, Inc., an independent global advisory firm with extensive expertise in forensic accounting and due diligence, to conduct an independent review of the Company’s cash balances as of June 30, 2011.

For no reason other than to counter the bad press a number of Chinese companies has received, the Company voluntarily retained FTI to perform an independent cash confirmation. No question or concern has been raised by the Company’s auditors, audit committee or any other relevant professional related to the Company’s cash balances.

FTI independently obtained and reviewed documents which state that as of June 30, 2011, ChinaCast had cash, cash equivalents and term deposits totaling US$132.1 million (RMB 845,674,247) held with 29 PRC financial institutions. This total represents 98.5% of the total cash, cash equivalents and term deposit balances reported in the Company’s form 10-Q for the second quarter ended June 30, 2011. The remaining 1.5% discrepancy is attributable to the termination of the Company’s University of Petroleum e-learning joint venture.

Daniel Tseung, Chairman of the Audit Committee, stated, “We believe the findings contained in the FTI report should provide some comfort to shareholders as to the integrity of the Company’s financial reporting and should serve to distinguish the Company from other Chinese companies that have received adverse publicity after failing to provide adequate verifications with respect to their financial statements.”

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