* MSCM says co didn't retain independent accounting firm
* Co says Form 20-F for 2010 to be delayed
(Adds background in para 5, details)
June 27 China's A-Power Energy Generation
Systems Ltd said its independent auditor, MSCM LLP, has
resigned as the green power company did not retain an
independent forensic accounting firm, as required by the
auditor, amid a slew of setbacks for U.S. listed-Chinese firms.
Trading of the company's shares, which have shed about 71
percent of its value in the last six months, on Nasdaq was
halted on Monday at $1.67.
In a letter dated June 26, MSCM wrote that it had resigned
as A-Power had not retained a qualified independent forensic
accounting firm to evaluate transactions, as required by the
auditor, the company said.
The company's audit committee members will meet with other
qualified independent auditing firms.
Earlier this month, the company said a director had resigned
on concerns that his views on process and best practices were
not "necessarily shared throughout the company".
A-Power is the latest to admit to auditing problems amid a
rash of scandals that have devastated the share prices of
U.S.-listed Chinese stocks.
The Shenyang-based company's annual report on Form 20-F for
2010 will be delayed beyond June 30, its filing date.
The company had postponed filings in the past. In March, it
was called to arbitration in a dispute with General Electric's
transportation unit for alleged breach of contract.
A-Power, which provides power generation systems and makes
wind turbines, competes with bigger rivals such as German solar
cell producer Q-Cells and Spanish windfarm operator
Iberdrola in the emerging global clean-power sector.
(Reporting by Vaishnavi Bala in Bangalore; Editing by Joyjeet
Das and Prem Udayabhanu)