Ceylon Leather Products suffers loss due to fraud

15 May 2015

Leading leather products manufacturer Ceylon Leather Products said it has lost over Rs24 million (about $180,000) to fraud by some employees at its tannery.


According to a disclosure made to the Colombo Stock Exchange, there was one thing that bothered them, the board of the company has been informed of fraud at the tannery in Mattakkuliya relating to off-spec leather and scrap material sales during the financial periods 2012 to 2014.


In light of the scandal, the company has initiated an inquiry and taken appropriate actions against the employees responsible.


An independent firm of chartered accountants was appointed to investigate and quantify the loss, and recommend further steps to prevent such fraudulent activities in the future.


Following the findings, the company has lodged a complaint with the Criminal Investigations Department (CID), Ceylon Leather Products said.


"The board of directors of the company assures its shareholders that it will vigorously pursue action against all those responsible for the aforesaid fraud, if revealed in the investigation," managing director Sitendra Senaratne said in a statement.

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