The allegations at the FTSE 250-listed miner, cofounded by financier Nat Rothschild, relate to Bumi Resources, in which London-listed Bumi holds a 29 per cent stake.
The company’s development funds, which focus on infrastructure, will be at the centre of the investigation. It is thought the irregularities relate to the $286m (£176.5m) of one-off accounting writedowns that Bumi made last year in Bumi Resources’ development operations. Mazars is auditor to Bumi Resources.
Ari Hudaya, non-executive director of Bumi and president director of Bumi Resources, yesterday stepped down from the board with immediate effect.
A source close to the Rothschild side of the board said of the investigation yesterday: “This is the first stage in a long road to allow all investors, and not just the Bakries, to share in the future profits of the business.”
Deputy chairman of Bumi, Julian Horn-Smith, yesterday told City A.M. that the board will form a “robust stand” to ensure the matters surrounding financial irregularities are resolved.