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London-listed Bumi PLC announced earlier this week that it had hired an independent firm to carry out an investigation directed primarily at Bumi Resources.
Just hours after the announcement, Bumi Resources chief executive officer Ari Hudaya resigned from the Bumi PLC board.
The Wall Street Journal reports that Bumi Resources director Dileep Srivastava said the company was in contact with the Indonesia Stock Exchange and would be “complying with all of our obligations under Indonesian law”
He said he had no prior knowledge of the planned investigation.
Bumi PLC – which counts financier Nat Rothschild as a non-executive director and is part-owned by Indonesia’s influential Bakrie family – has a 29% stake in PT Bumi Resources.
One area of the investigation’s focus will be the development funds of PT Bumi Resources.
“The extensive development funds in PT Bumi Resources and the one development asset in PT Berau Coal Energy were marked down to zero in the accounts except for one investment with a carrying value of $39 million in the consolidated financial statements,” Bumi said.
Bumi has interest in the largest coal-producing assets in Indonesia.
The company has an 85% holding in Berau Coal.
