Wrongdoing at Blue Diamonds, independent Sri Lankan audit reveals

An independent audit commissioned by Sri Lanka’s Securities and Exchange Commission (SEC) has bared several irregularities at the troubled Blue Diamonds Jewellery Worldwide PLC (BLUE) including possible abuse of public funds.
In a public announcement on Thursday, the SEC said the findings by Messrs Ernst & Young “… reveal inter alia several irregularities in the conduct of the business affairs of BLUE by the management which may point to the possible misappropriation of public funds in relation to the proceeds raised by way of a Rights Issue and the possible commission of one or more capital market related offences as well as offences under the Penal Code”.
In view of these findings, the SEC said investigations were continuing into the company.
“BLUE is also in receipt of the above reports .... and has sought time to submit a reply to the findings contained in these reports. The contents of these reports will be made available to the Colombo Stock Exchange in due course after obtaining the response of the company,” it said. – ENDS -