Sébastien de Montessus was given the boot, and that sent Endeavour Mining share prices down. Picture: Supplied
Sébastien de Montessus has been relieved of his position as President and CEO of Endeavour Mining, according to a statement by the board of directors.
It should be noted that De Montessus has been accused of serious misconduct and was released with immediate effect.
According to an investigation done by the board, De Montessus is caught up in an irregular payment instruction about an asset disposal.
The irregular payment was $5.9 million (R110 million), and the board became aware of this payment through a review of the company’s acquisitions and disposals.
According to Reuters, De Montessus noted in an email back in 2021 that he had told a creditor of the company to offset an amount that was owed to Endeavour.
The money was used to pay for vital security equipment to "protect our partners and employees in a conflict zone," according to De Montessus.
"The decision had no additional cost to the company and did not benefit me personally in any way. I omitted to inform the board that I had arranged for this offset, which I have freely accepted was a lapse in judgement," he adds.
According to the Financial Times, forensic accountants were not able to identify the owner of the bank where the funds were sent.
When news of De Montessus’ ousting broke on Friday, the company’s share price fell 7% on the London Stock Exchange. The share price was CA$28.32 on Thursday last week, a day before the news hit. The shares then nose-dived to $26.07.
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