London firm asked to advise on Bumi mining investigation
26th September 2012
A leading corporate firm which boasts solicitors with some of the most senior London legal jobs has been asked to advise the international mining giant Bumi as the company launches an internal investigation into alleged financial wrongdoing by officials involved in its Indonesian operations.
The investigation arises from apparent irregularities that were found to have taken place within PT Bumi Resources, a subsidiary of the main corporation in which they have a significant 29 per cent stake.
According to reports, millions of dollars are thought to have been unlawfully diverted in recent times, and Bumi chiefs are determined to show that they are pursuing every avenue in order to get to the bottom of what did or did not happen as soon as possible.
Although the investigation, which will be led by the expert counsel of the practice in question, should be good for the firm in the long term, initial reaction to the announcement of the investigation was negative, leading to share prices collapsing by roughly 25 per cent and the resignation of Ari Hudaya, a non-executive director of Bumi.