19th Mar 2019 08:54
LONDON (Alliance News) - Ferrexpo PLC said a review of funds paid to a Ukrainian charity indicate the funds may not all have been used for their stated purpose and, as a result, will delay 2018 its financial results to April 3.
Shares in the iron pellet producer were down 7.0% Tuesday morning at 251.30 pence each.
In early February, Ferrexpo said it would conduct a comprehensive review into Blooming Land after uncovering issues with the charity's accounts.
At the time, Ferrexpo explained its auditor Deloitte LLP received bank statements directly from the charity Blooming Land in order to verify the use of contributions by Ferrexpo.
The bank statements from the charity - which is separately managed from Ferrexpo - revealed "as yet unexplained discrepancies".
As well as discovering problems with bank statements, Ferrexpo has now identified "a number of discrepancies" on the application of funds by Blooming Land - which, according to Ferrexpo, suggest the funds "may not have been used for their stated purpose".
Ferrexpo said: "The board is committed to understanding the full extent of these issues and, in the interests of transparency and governance, keeping shareholders updated, as appropriate."
In the first half of 2018, Ferrexpo had contributed USD9.5 million to the medical and social services charity. It has not made any further donations since May 2018.
Related Shares:
Ferrexpo