Jewellery experts today poured scorn on reports that collapsed building firm Wrekin Construction was the owner of a precious ruby worth £11 million.

The ruby is said to have been bought by the Shifnal-based firm from its parent company, Tamar Group Limited, in return for the issue of 11 million shares worth £1 each.

Company documents claim the ruby, known as ‘The Gem of Tanzania’ was bought from one of its shareholder businesses, and that the fair value was placed on the stone by the Institute of Gemmologico in Italy on August 31, 2007.

But today one of the institute’s senior gemologists in Milan, said: “That is impossible, because we were on holiday on August 31 2007.”

Auction house Christie’s also expressed doubt about the accuracy of Wrekin Construction’s claims.

Wrekin Construction went into administration earlier this week with multi-million pound debts, and has since laid off more than 400 staff.