The board of Federal International (2000) lodged a police report last Friday over alleged misconduct by two key employees of its subsidiaries.
The duo, who were not named, were key management personnel at Alton International Resources and PT Alton International Resources, which are responsible for the group's resources business in Indonesia. This included sales and mining of coal and other natural resources.
One of the employees tendered her resignation in March 2011 and no longer works in the subsidiary. The other manager remains under employment of the group but is suspended.
"As the losses associated with the suspected allegations had already been recognised in the consolidated financial statements of the group in prior financial years, the company has been advised that there is no impact on the group's operating results in the current financial year," said Federal International.