An internal investigation into Endeavour Mining’s (TSX: EDV; LSE: EDV) former chief executive Sébastien de Montessus has concluded he intentionally concealed payments totalling US$15 million to an undisclosed third party while at the post.
The London-based precious metals producer dismissed de Montessus in January, citing serious misconduct as he authorized an irregular US$5.9 million payment related to an asset sale.
Endeavour noted the French executive had not informed the board about this payment instruction, adding that he disguised it as an advance installment owed to a contractor.
The company, backed by Egyptian billionaire Naguib Sawiris, said in a statement de Montessus’s actions had “caused” the company to make two payments adding up to US$15 million to the same third party that had received the US$5.9 million.
“No evidence of bribery, or of any payments being made to sanctioned persons or to terrorist groups,” the company said.
The miner noted the ultimate beneficiaries of the irregular payments have not been discovered, despite extensive investigation.
De Montessus has denied allegations of misconduct but acknowledged at one point “a lapse in judgment.”
His abrupt departure marked the conclusion of a seven-year leadership at Endeavour. During his tenure, he helped reshape the company by engaging in numerous deals and constructing new mines to replace small, high-cost operations.
Endeavour made a takeover approach last year to rival Kinross Gold (TSX: K; NYSE: KGC), but the target company rebuffed the bid.
The miner currently has four operation gold mines, which are located in Senegal, Côte d’Ivoire and Burkina Faso.
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