14th Oct 2019 08:18
(Alliance News) - Iron ore pellet firm Ferrexpo PLC again on Monday backed its chief executive amid allegations of misconduct in Ukraine.
Ferrexpo said it is aware of media reports surrounding CEO Kostyantin Zhevago, but said no legal action has been taken against him and added he "strongly denies" any wrongdoing.
Last week, Bloomberg reported Ukraine has added Zhevago to an international wanted list after he failed to report for questioning about former business commitments. He has been named as a suspect in absentia, Bloomberg reported, and investigators have begun court proceedings to find him.
According to Bloomberg, Ukrainian investigators believe he has committed "large-scale" money laundering and embezzlement.
The statement on Monday follows a similar one two weeks ago, when Ferrexpo said Zhevago had not received a notice of suspicion in Ukraine.
Ferrexpo noted at the time allegations made on "social media" that Zhevago has been served with a notice of suspicion regarding an investigation in Ukraine relating to one of the businesses he owned until 2015. Zhevago "strongly denies any allegations of wrongdoing", the company added.
The allegations about Zhevago come after Ferrexpo has grappled with an investigation into charity payments in Ukraine. This internal investigation found it was possible payments made to a charity were used inappropriately, stressing no directors of the company were involved.
Last week, Ferrexpo cut its 2019 production guidance following a decline in third-quarter production, blaming the current iron ore pellet market environment.
Ferrexpo shares were down 2.6% at 143.90 pence each in London on Monday morning.
By George Collard; [email protected]
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