The mentioned rules are made through negotiations with the administrative bodies and the assessment of high risks associated with the exploitation of minerals. Unless firms are confident that they will achieve success in their operations, Indonesia does not allow them to proceed with the exploration. Once a foreign firm completed the necessary steps and attained a CoW in the industry, it can proceed with its production of the deposits. This means that despite foreign companies following the established rules for entering the industry, the negotiations with MME can take years, with approvals heavily dependent on favoritism from the government as seen from the example with Minister Sudjana and Barrick. To gain leverage over the Indonesian relationships, Bre-X tried to let other companies into their Busang project while still maintaining control over it. For instance, the company hoped to open action on the controlling interests in Busang to other mining companies.
Bre-X: The Battle for Busang (A)
Fraud Examination – Bre-X Minerals Case Study - rentalmobildisurabaya.info
According to a Probation Department report prepared for the sentencing, the defendant was previously arrested 13 times on drug and prostitution charges between and No further arrests were cited. The defendant blamed addictions to gambling and prescription drugs for her insatiable appetite to embezzle millions of dollars from her employer. Investigators reported that the defendant hid her theft by forging accounting spreadsheets and destroying bank records. They also said bank records only dated back to , so that was as far back as the investigation went; it is unknown whether any thefts occurred prior to Unfortunately, the above case is not a rare example—one simply used to describe how easily management can miss or ignore a warning sign that an internal fraud could potentially be taking place within the organization.
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In , Bre-X Minerals, a tiny Canadian mining firm, struck gold. Deep in the heart of the Borneo jungle, it discovered what appeared to be one of the world's largest and most cost-effective gold deposits. Almost immediately, the firm's stock price shot upwards and its managers were besieged by eager investors and would-be partners. They also became mired in the relationship-based politics of Indonesia.
Everyday thousands of awesome penny stocks companies enter the micro cap market. Nobody knows how many of them will rise or fall as our case study shows below. Some of them will prove to become a case study material on how to make money with penny stocks while others will go down taking the money of their investors with them. During its best times Enron was one of the largest companies in the United States with nothing predicting its demise. So what went wrong with a former giant Enron and what can be learnt form this case study?