(Alliance News) - Ferrexpo PLC on Monday said Chief Executive Officer Kostyantin Zhevago will step down temporarily to focus on resolving matters in Ukraine relating to one of the businesses he owned until 2015.
Zhevago, who according to Morningstar holds a 50% stake on Ferrexpo, will remain on the board as a non-independent, non-executive director, the company added.
FTSE 250-listed Ferrexpo said Chief Financial Officer Chris Mawe has been appointed as acting chief executive. Mawe has "deep knowledge" of the company's operations acquired during his 11 year stint, it added. The changes will take place with immediate effect.
Earlier this month, Bloomberg reported Ukraine had added Zhevago to an international wanted list after he failed to report for questioning about former business commitments. He was named as a suspect in absentia, Bloomberg reported.
According to Bloomberg, Ukrainian investigators believe he has committed "large-scale" money laundering and embezzlement.
Zhevago "strongly denies any allegations of wrongdoing", the company had said in response.
Ferrexpo Chair Steve Lucus said on Monday: "The board, including Zhevago, believes that this temporary change of leadership is necessary and in the interests of all shareholders to enable Zhevago to focus on on-going matters in Ukraine without impacting the company's operations. Zhevago continues to have the full support of the board."
During the past year, Ferrexpo has been plagued by concerns over its corporate governance practices.
The stock is down 31% so far in 2019. It was off 0.2% early Monday at 133.15 pence.
Ferrexpo set up an independent committee to look into allegations that payments made by the company to Ukrainian charity Blooming Land were misused.
The independent committee was set up after the firm's auditor Deloitte LLP resigned in April, saying Ferrexpo had refused to set up an independent investigation into the matter in January.
Ferrexpo maintained that Zhevago does not have significant control over the Blooming Land trust.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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