(Alliance News) - Endeavour Mining PLC on Thursday said it sacked its President & Chief Executive Sebastien de Montessus, for "serious misconduct" with immediate effect.
The gold miner with assets in nations including Senegal and Burkina Faso said the move followed an investigation into an irregular payment instruction issued by him in relation to an asset disposal undertaken by the company.
The irregular payment instruction amounted to USD5.9 million and was discovered in the course of a review of acquisitions and disposals, which is ongoing.
De Montessus responded to the allegations, saying in 2021 he had instructed a creditor to "offset an amount owed to the company to pay for essential security equipment to protect our partners and employees in a conflict zone".
This had "no additional cost to the company" and "did not benefit [him] personally in any way", he maintained.
However, de Montessus conceded that omitting to inform the board of the arrangement was "a lapse in judgement".
Separately, in October 2023 allegations were made against de Montessus through the company’s confidential whistleblowing channel relating to his personal conduct with colleagues.
Following a recent external investigation, the board had received the findings and, at the point of termination, said it was considering the appropriate course of action.
De Montessus added: "This week I was given 48 hours' notice of the concerns and no proper opportunity to answer them. As to the other investigation: no misconduct of any kind was discovered because none occurred. I am proud of what we have built together at Endeavour over the past 8 years. I will take my time to consider my position with my advisers."
Ian Cockerill, currently deputy chair, has been appointed chief executive officer & executive director with immediate effect.
Sebastien de Montessus has led Endeavour since 2016, and was reportedly paid GBP8.9 million in 2022, below the GBP18.8 million he was handed in 2021.
The bumper pay package in 2021 was a reward for the company successfully shifting its primary listing from Canada to London.
Shares in Endeavour Mining closed down 1.3% at 1,694 pence in London on Thursday.
By Jeremy Cutler, Alliance News reporter
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Endeavour Mining (EDV)