GM Reportedly Facing SEC Scrutiny

October 27, 2005 8:45 AM, EDT

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he Securities and Exchange Commission is investigating some of General Motors’ accounting practices, the New York Times reported Thursday.

GM said the investigations include its handling of pensions and some transactions with supplier Delphi, which was once a division of GM and recently filed for bankruptcy, the Times reported.

The investigations, which include the issuing of subpoenas, may look at whether GM has understated its debt or inflated its income, the paper said.

Until now, the S.E.C. was conducting an informal inquiry of pension accounting at about six large companies, including GM, the world’s largest automaker, the Times reported.

In a statement issued late Wednesday, GM said the subpoenas involved not only its accounting for retirement benefits and some transactions with Delphi but also its handling of the recovery of recall costs from suppliers, the paper said.