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Petropavlovsk appoints KPMG to probe prior deals
23rd Nov 2020 07:27
(Sharecast News) - London-listed Russian gold miner Petropavlovsk said it had appointed of KPMG to investigate related-party transactions undertaken by the company over the last three years.
The probe was approved by shareholders at a general meeting in August. Petropavlovsk has been shaken by a turbulent battle for control this year that saw its two co-founders removed from the board.
Several areas that warranted further enquiry, the company said on Monday, adding that it would be providing the related information to KPMG.
"Petropavlovsk has failed to deliver value to its shareholders and employees over many years, and we believe that poor governance and controls have been a major contributory factor," said chairman James Cameron.
"The current board is committed to transparency and exposing any historic instances of failed corporate governance, as well as to the recovery of any misappropriated funds or assets."
Cameron, who was appointed earlier this year, last month said not all Petropavlovsk employees were following directions from new management.
He cited a lack of co-operation "from a very small number of senior employees and officers of the company's subsidiaries, who appear to have been subjected to pressure to withhold certain documents and operational data from the board and to disregard the board's instructions in certain respects".
The probe was approved by shareholders at a general meeting in August. Petropavlovsk has been shaken by a turbulent battle for control this year that saw its two co-founders removed from the board.
Several areas that warranted further enquiry, the company said on Monday, adding that it would be providing the related information to KPMG.
"Petropavlovsk has failed to deliver value to its shareholders and employees over many years, and we believe that poor governance and controls have been a major contributory factor," said chairman James Cameron.
"The current board is committed to transparency and exposing any historic instances of failed corporate governance, as well as to the recovery of any misappropriated funds or assets."
Cameron, who was appointed earlier this year, last month said not all Petropavlovsk employees were following directions from new management.
He cited a lack of co-operation "from a very small number of senior employees and officers of the company's subsidiaries, who appear to have been subjected to pressure to withhold certain documents and operational data from the board and to disregard the board's instructions in certain respects".