Frances Ball 26 Apr 2019 11:28am

Deloitte drops Ferrexpo over charity fund concerns

Auditors at Deloitte found holes in the statements of Blooming Land, the charity that coordinates corporate social responsibility programme for Ferrexpo, the Swiss iron-ore miner

Ukraine is currently investigating Blooming Land for money-laundering and tax evasion. According to Ferrexpo’s 2018 annual statement, the group contributed $9.5m (£7.3m) to the charity.

Ferrexpo said that Deloitte had resigned with immediate effect.

Deloitte concluded that there were links between Kostyantin Zhevago, Ferrexpo’s chief executive and controlling stakeholder, and Blooming Land charity.

Ferrexpo set up an independent review committee in February to investigate the claim. The committee came to the interim conclusion that Blooming Land was not related to the company’s executive management.

Ferrexpo’s annual results state, “The board has formed a unanimous view, based on a lack of clear evidence to the contrary and unambiguous representations given to the board by the CEO over many years, that the CEO does not have significant influence or control over Blooming Land.”

The company says it will continue to update shareholders “as appropriate”.

Ferrexpo had delayed publishing its results after the discrepancies were first uncovered.