Ceylon Leather Products PLC yesterday informed the Colombo Stock Exchange that the employees in its tannery in Mattakkuliya had defrauded the company of Rs.25 million during the financial period of 2012 to 2014.
The racket had involved the sale of off speck leather and scrap material.
Following suspicions being raised, the company took action against the employees and had hired an independent Chartered Accountant firm to investigate the matter.
Ceylon Leather Products said that it had lodged a complaint with the Criminal Investigation Department and the matter is currently being investigated.
The management said that it had also taken immediate steps to strengthen the controls within the company.