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Sri Lanka regulator orders audit of Blue Diamonds Jewellery over fraud complaint

Feb 12, 2016 18:25 PM GMT+0530 | 1 Comment(s)

ECONOMYNEXT - Sri Lanka's Securities and Exchange Commission has ordered an audit of the books of Blue Diamonds Jewellery Worldwide Plc, over allegations of accounting fraud and mis-use of funds.

SEC said shareholders and investors have alleged that September quarter accounts are misleading investors and money raised from a recent rights issue had been mis-used for the benefit of related parties.

SEC had ordered Ernst and Young, an accounting firm to audit the books of Blue Diamonds Jewellery to probe where the rights issue money has been spent, uncover all related party transaction and find whether the accounts complied with Sri Lanka's accounting standards.
 
SEC had also order directors and the Blue Diamonds to open their books and provide information asked for by the auditor.

Shares of Blue Diamonds Jewellery Worldwide, which manufactures and exports diamond studded gold jewellery, last traded at one rupee on the Colombo bourse.(Colombo/Feb12/2016 - updated)
 


 

1 Comments

  1. sacre blieu February 13, 06:15 AM

    The delay in establishing justice is been taken advantage of by continuing deceptive practices by many businesses to not only hoodwink the investors, more so the minorities, and the public as a whole. Their spending habits are still questionable and is well hidden in the accounts. Even they do not pay the legitimate taxes and engage fake tax consultants to deny government of its lawful dues. The government has lost its credibility and integrity by having protected the governor of the central bank, who has flawed.

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