Probe finds miner Ferrexpo’s charity funds ‘could have been misused’
An investigation into mining firm Ferrexpo’s charitable donations has concluded that some of the company’s funds may have been misused.
The Ukraine-focused miner earlier this year launched the independent review into money given to charity Blooming Land, after auditors Deloitte pointed out discrepancies in last year’s financial report.
Read more: Ferrexpo delays its financial results amid Ukrainian charity probe
The review team has since “carried out a significant amount of work,” interviewing Ferrexpo directors and going over documents, but it has nonetheless “not been possible to explain a number of discrepancies”.
“Indications therefore remain that some of the funds could have been misappropriated,” it said.
London-listed Ferrexpo was able to assure, however, that management and directors were not involved in any potential misappropriation of funds.
Shares rose 1.8 per cent this morning.
Blooming Land, a Ukrainian charity, was set up to run Ferrexpo’s corporate social responsibility programme.
The miner delayed its annual report twice over the issue, which also caused its share price to fall and Deloitte to resign as its auditor.
Read more: Ferrexpo delayed probe into charity partner, claims former auditor Deloitte
The big four audit firm resigned in April after it could not rule out that Ferrexpo’s billionaire boss Kostyantin Zhevago had links to Blooming Land.
Ferrexpo at the time said it had disagreed with Deloitte, saying its board had come to the “unanimous” decision that Zhevago did not have “significant influence or control over Blooming Land”.
Main image: Getty