LONDON (dpa-AFX) - Ferrexpo Plc. (FXPO.L) said Monday its independent review committee found that the charity organization Blooming Land is not a related party of the company's chief executive officer nor of the Group's executive management.
Ferrexpo's Auditor Deloitte LLP had resigned on Friday, saying it was unable to conclude whether the company's chief executive controlled a charity being investigated over its use of company donations. Ferrexpo's directors Mary Reilly and Bert Nacken had also resigned.
Deloitte viewed that the company delayed in commencing its independent review into the Group's charitable donations to Blooming.
Ferrexpo believes it initiated the Independent Review at the appropriate time. However, Deloitte had cited the company's delaying in conducting the review among other factors that led to the resignation of the auditor.
For Ferrexpo, the investigation into the charity is fueling worries about governance and financial controls at the company. Ukrainian authorities are probing whether the charitable foundation was used to launder money and evade taxes.
There are indications that some funds could have been misappropriated, but further work is required before any final conclusions can be drawn, Ferrexpo said.
Copyright RTT News/dpa-AFX
© 2019 AFX News
