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Failed company accused of financial mismanagement

A 2 kg ruby named the "Gem of Tanzania" is this evening at the centre of a bizarre financial mystery. The gem had been used to underpin the finances of Wrekin Construction before the company went into administration in March 2009 with the loss of 500 jobs. However, while the gem was valued at £11 million in the company's report and accounts, Ernst & Young, the company's administrator, has put the gem up for sale and received a very alarming valuation!

One gem expert believes that the stone could be worth as little as £100 which has cast a large shadow over the company's finances in the past and how the stone itself could be valued at £11 million in the company's report and accounts. This would appear to be mystery which will take some time to unravel but there is no doubt it must be one of the most bizarre that Ernst & Young have been involved in!

However, while the collapse of the construction company in question is grabbing the headlines, there are many more "straightforward" collapses occurring up and down the UK with cash flow causing significant issues for many companies. While UK banks continue to withhold much-needed finance from the UK consumer and corporate markets, the flood of administrations will continue for some time to come.

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