Bumi, the Indonesian coal-mining firm part-owned by financier Nat Rothschild, has launched an internal investigation into alleged financial irregularities, underscoring rising investor anger at the controversial investment company.
One of Bumi’s largest shareholders is the influential Bakrie family, whose business dealings have come under mounting scrutiny.
Ari Hudaya, a close associate of the Bakries, resigned from Bumi’s board hours after yesterday’s announcement and the company’s shares closed down 25 per cent at 147.6p, after falling 22 per cent on Friday. Its share price peaked at £14 in April 2011.
Bumi’s travails have undermined Mr Rothschild’s model of using London-listed vehicles to offer investors shares in natural resource companies based in risky countries.
The probe was ordered after non-executive directors presented evidence to the board pointing to potentially suspect transactions at PT Bumi Resources, a Bakrie-controlled Indonesian entity in which Bumi owns a 29 per cent stake. – (Copyright 2012 The Financial Times Limited)
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