ERG could receive multimillion-dollar compensation from the SFO after a ten-year investigation
The UK’s Serious Fraud Office (SFO) will likely be forced to reimburse mining giant Eurasian Natural Resources Corporation (ENRC) or Eurasian Resources Group (ERG). This is due to a criminal investigation.
For reference.Eurasian Resources Group (ERG) is an international conglomerate and a prominent player in the global mineral resource extraction and processing sector. The company operates with integrated capabilities, encompassing mining, processing, energy production, and logistics. The majority of its assets are located in Kazakhstan. ERG was formerly known as Eurasian Natural Resources Corporation (ENRC) and was once listed on the FTSE 100 index with its shares traded on the London Stock Exchange (LSE) and the Kazakhstan Stock Exchange (KASE).
ERG holds the distinction of being the world’s largest producer of ferrochrome in terms of chromium content, the largest iron ore mining and processing enterprise in Kazakhstan, and one of the world’s major iron ore exporters. Additionally, it ranks as the ninth-largest global producer of industrial alumina by volume.
ERG significantly contributes to the economic development of Kazakhstan, with its operations accounting for approximately 3% of the country’s GDP in 2009.
In August this year, the SFO completed a ten-year investigation into ERG. At the same time, she announced that she did not have enough convincing evidence that could be used in court.
As a result of the claim, which was filed by the SFO, ERG faced difficulties. They resulted in financial costs and wasted management time. This was announced on Thursday by London High Court Judge David Waxman. The court concluded that without the SFO’s “misconduct” the prosecution would not have been possible. As reported by portugalnews, potential compensation could reach multi-million pounds.
Until the spring of 2013, ERG decided to end its cooperation with the law firm Dechert. The firm was paid approximately £13 million (equivalent to approximately $16.5 million) for its legal services. The firm later received a refund of almost £9 million of this amount.
The mining giant, whose production capabilities are located in Kazakhstan and several African countries, previously went to court. The claim was directed against the SFO. ERG argued that the agency’s actions during the investigation into alleged corruption were illegal. The corporation said Neil Gerrard, a former partner at Dechert LLP, which the mining company hired to conduct an internal investigation in 2010, and the SFO colluded.
ERG later accused Gerrard of using confidential information about the company for his own benefit. Also in passing this information to the SFO to expand the investigation, which allowed the lawyer to profit from increased legal costs.
By data Wall Street Journal on December 21, Gerrard’s representative declined to comment. In previous statements, Gerrard has insisted that his actions were legal.
