BUMI RNS – so now we know the reason behind the share price decline…

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From this mornings RNS

The Company has become aware of allegations concerning, among other matters, potential financial and other irregularities in the Company’s Indonesian operations, especially in relation to PT Bumi Resources Tbk, in which the Company has approximately a 29 per cent. interest.

An independent investigation has been commissioned to investigate the allegations on an urgent basis, and is to report to the Board. The Company also intends to contact relevant authorities in the UK and Indonesia, as appropriate, in respect of some of the allegations.

An area of focus of the investigation will be the development funds of PT Bumi Resources Tbk. The extensive development funds in PT Bumi Resources Tbk and the one development asset in PT Berau Coal Energy Tbk were marked down to zero in the accounts of Bumi plc as at 31 December 2011, except for one investment with a carrying value of $39 million in the consolidated financial statements.

A further announcement will be made in due course.

Question is what will Natty do now and how will the institutions react who invested in his UK corporate clean up story…?

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