Endeavour investigation into CEO finds hidden payments of $15m

(Sharecast News) - An investigation into controversial former Endeavour Mining boss Sébastien de Montessus found two more "deliberately disguised" payments totalling $15m to an unnamed third party, the company said on Wednesday. De Montessus was sacked in January after allegations he instructed the company to make an irregular and unreported $5.9m payment in relation to an asset disposal.

Endeavour commissioned Linklaters and EY to conduct a full probe and released key findings on Wednesday. The report found de Montessus and "certain others" outside the company instigated two payments worth $15m "deliberately disguising them as advance payments to a contractor through repeated false representations to management".

These were delivered to the same party that received the initial $5.9m payment.

It added that no evidence of bribery, or any payments being made to sanctioned persons or to terrorist groups had been found.

The company added that "despite extensive efforts" the investigation could not discover the ultimate beneficiary of the payments, which were made to an offshore entity in Ras Al Khaimah in the United Arab Emirates.

De Montessus has denied wrongdoing about the $5.9m payment and admitted he should have told the board, but claimed the cash was for security services.

Reporting by Frank Prenesti for Sharecast.com