Proactive Investors - Endeavour Mining PLC (LON:EDV) has announced the completion of an investigation initiated after the dismissal of its former chief executive, Sébastien de Montessus.
It was launched to scrutinise certain financial transactions following his termination and was concluded without the need for a restatement of the company's historical financial statements, with no material impact on 2023 accounts, which received an unmodified audit opinion.
The probe revealed that de Montessus, in collaboration with individuals outside the company, was involved in redirecting a payment of US$5.9 million to a third-party company and concealing his actions through false statements to the company's management, board, and auditors, Endeavour confirmed.
Additionally, he orchestrated two payments totalling US$15 million to the same third-party entity, misrepresented as advance payments to a contractor, it added.
Notably, the investigation found no evidence of bribery, payments to sanctioned individuals, or connections to terrorist organisations. Despite thorough efforts, the ultimate recipients of these payments remain unidentified, investors were told.
De Montessus's explanations were deemed 'implausible and untruthful' throughout the investigation.
In response to these findings, Endeavour said it took decisive action, terminating de Montessus on January 4. Subsequently, on January 18, the company announced a clawback of remuneration amounting to US$29.1 million from him.
Acknowledging the deliberate evasion of its controls, Endeavour's board has expedited a review of its internal controls in alignment with the updated UK Corporate Governance Code.
This review has already led to immediate enhancements in controls, particularly concerning mergers and acquisitions activities, to prevent similar incidents in the future, the company said.
Endeavour chairman Srinivasan Venkatakrishnan said: “The board’s actions illustrate the high importance we place on integrity, governance and transparency.
"We will not waver from these values. The conclusion of the Investigation enables us to put this matter behind us and focus on delivery and creating value for all our stakeholders.
"Under the highly experienced leadership of Ian Cockerill, we are confident we will deliver on our two high-quality development projects and move towards a period of free cash generation.”