Ferrexpo PLC ’s (LON:FXPO) billionaire chief executive Kostyantin Zhevago has temporarily stepped aside to focus on accusations related to a bank he owned until 2015.
Steve Lucas, Ferrexpo’s chairman, said: "The Board, including Mr Zhevago, believes that this temporary change of leadership is necessary and in the interests of all shareholders to enable Mr Zhevago to focus on on-going matters in Ukraine without impacting the company's operations. Mr Zhevago continues to have the full support of the Board.”
Chris Mawe, chief financial officer, is taking over as the iron ore pellet group’s acting chief executive in addition to his financial duties.
Mawe has been with the Ukraine group for eleven years.
An investigation into the use of funds by Ferrexpo’s charity partner in Ukraine is also is ongoing.
Ferrexpo gave US$110mln to Blooming Land between 2013 and May 2018 when it stopped payments and terminated its relationship with the charity.
In August, the independent review committee (IRC) said it had uncovered discrepancies that it was not able to explain.
The IRC said there were indications that some of the funds might have been misappropriated although it was satisfied that none of Ferrexpo's directors, management or employees had any involvement.