Bumi launches investigation into 'irregularities'

Mining giant Bumi said it was investigating allegations of financial and other irregularities at its Indonesian operations.

The investigation centres on PT Bumi Resources, in which the company has a 29%. interest, with particular focus on that firm's development funds.

"The extensive development funds in PT Bumi Resources Tbk and the one development asset in PT Berau Coal Energy Tbk were marked down to zero in the accounts of Bumi plc as at 31 December 2011, except for one investment with a carrying value of $39m in the consolidated financial statements," the statement said.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

It added the independent investigation would examine the allegations on an urgent basis and report to the board.

The company said it also intended to contact relevant authorities in the UK and Indonesia, as appropriate, in respect of some of the allegations.

The FTSE 250 company, whose London listing was driven by financier Nat Rothschild, last lost around half its value in the last month due to debt worries at Bumi Resources as well as the falling value of coal.