Former Bumi CEO quits board as investigation starts

FTSE 250 miner Bumi said its former Chief Executive had resigned from his current role as non-executive director following the launch of a probe into 'irregularities' at its Indoneisan business.

The firm said Ari Hudaya, who was CEO until March and is also president director of PT Bumi Resources, the focus of the investigation, had resigned from the board with immediate effect.

The "urgent" probe into PT Bumi Resources, in which the company has a 29% interest, is focusing on the firm's development funds.

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It relates to a $637m writedown of development funds and exploration assets in Bumi's December 31st, 2011, year-end report.

Bumi said the funds had been marked down to zero in the accounts, except for one investment with a carrying value of $39m.

The company said it intends to contact relevant authorities in the UK and Indonesia in respect of some of the allegations.

The company, whose London listing was driven by financier Nat Rothschild, had already seen shares hit the skids over the last month due to debt worries at Bumi Resources, as well as the falling value of coal.

At 0900 on Tuesday the company was trading at half the value of a week before.