15 08 13 Guardian – SFO receives ENRC legal documents from ex-lawyers
The
papers had been held by Dechert – the US law firm previously hired by ENRC to
run an internal investigation into a range of allegations – and follows a
so-called "section 2 notice" issued by the SFO which compelled Dechert into
handing over documents.
papers had been held by Dechert – the US law firm previously hired by ENRC to
run an internal investigation into a range of allegations – and follows a
so-called "section 2 notice" issued by the SFO which compelled Dechert into
handing over documents.
ENRC split
from Dechert in the spring and shortly afterwards the SFO launched
its criminal investigation into ENRC, saying it would be focussing on
allegations of "fraud, bribery and corruption relating to the activities of the
company or its subsidiaries in Kazakhstan and
Africa".
In its half-year results statement released on Wednesday, ENRC said:
"The first notice requires the delivery of certain Dechert materials by the end
of August 2013 and the second notice requires that the remainder of the Dechert
materials are submitted to the SFO by the end of October 2013. The group
continues to cooperate fully with the SFO and are committed to a full and
transparent investigation of all of our procedures and conduct".
The
statement was made as Felix Vulis, ENRC's chief executive, fronted what should
be the £3bn company's final results statement to the City, as the group is
almost certain to de-list its shares from the London Stock Exchange by
October.
ENRC is in the process of being taken private by a consortium
involving the company's three founding shareholders and the Kazakhstan state,
which collectively holds around 55% of the shares. The bid has also received the
backing
of ENRC's largest shareholder, its neighbour and rival Kazakhmys, which owns
an additional 26% stake.
The bid to take the company private followed a
string of high profile problems within the mining firm in addition to the SFO
investigation. They have included: two ongoing
inquiries by the UK Listing Authority; the founders ousting independent
directors from the board; and ENRC launching a legal action against a former
director for allegedly leaking company information.
However, when asked how
he thought London had treated ENRC as a public company, Vulis insisted: "That's
an interesting question. First of all we are still here. Second, we are very
much enjoying being here in the City and very much enjoyed the time. Hopefully
the City has enjoyed us as much as we have enjoyed the City."
Additionally,
Vulis said that first half pre-tax profits had halved to $309m (£199m), from
$696m last year. The slump was partly caused by the decreasing value of the
group's subsidiary Boss Mining, in the Democratic Republic of Congo, which was
written down by $152m as the company has pulled investment from the business to
concentrate on higher priority projects.
from Dechert in the spring and shortly afterwards the SFO launched
its criminal investigation into ENRC, saying it would be focussing on
allegations of "fraud, bribery and corruption relating to the activities of the
company or its subsidiaries in Kazakhstan and
Africa".
In its half-year results statement released on Wednesday, ENRC said:
"The first notice requires the delivery of certain Dechert materials by the end
of August 2013 and the second notice requires that the remainder of the Dechert
materials are submitted to the SFO by the end of October 2013. The group
continues to cooperate fully with the SFO and are committed to a full and
transparent investigation of all of our procedures and conduct".
The
statement was made as Felix Vulis, ENRC's chief executive, fronted what should
be the £3bn company's final results statement to the City, as the group is
almost certain to de-list its shares from the London Stock Exchange by
October.
ENRC is in the process of being taken private by a consortium
involving the company's three founding shareholders and the Kazakhstan state,
which collectively holds around 55% of the shares. The bid has also received the
backing
of ENRC's largest shareholder, its neighbour and rival Kazakhmys, which owns
an additional 26% stake.
The bid to take the company private followed a
string of high profile problems within the mining firm in addition to the SFO
investigation. They have included: two ongoing
inquiries by the UK Listing Authority; the founders ousting independent
directors from the board; and ENRC launching a legal action against a former
director for allegedly leaking company information.
However, when asked how
he thought London had treated ENRC as a public company, Vulis insisted: "That's
an interesting question. First of all we are still here. Second, we are very
much enjoying being here in the City and very much enjoyed the time. Hopefully
the City has enjoyed us as much as we have enjoyed the City."
Additionally,
Vulis said that first half pre-tax profits had halved to $309m (£199m), from
$696m last year. The slump was partly caused by the decreasing value of the
group's subsidiary Boss Mining, in the Democratic Republic of Congo, which was
written down by $152m as the company has pulled investment from the business to
concentrate on higher priority projects.