UK launches investigation over ENRC

Great Britain's Serious Fraud Office (SFO) started an official investigation over Eurasian Natural Resources Corporation (ENRC), Interfax-Kazakhstan reports citing the company. "ENRC confirms that it renders support and fully cooperates with SFO. ENRC strives for a comprehensive and transparent investigation," the message states. Meanwhile, the message published on the SFO website states that SFO Director David Green met with ENRC representatives over "allegations of fraud, bribery and corruption relating to the activities of the company or its subsidiaries in Kazakhstan and Africa". Top managers started leaving ENRC recently. The company's chairman Mehmet Dalman resigned this week and Gerhard Ammann was appointed its new chairman. Besides, board members Dieter Ameling and Paul Judge withdrew from re-election scheduled for June. ENRC Chief Commercial Officer Jim Cochrane also quit on April 15. Meanwhile, major shareholders of ENRC Aleksander Mashkevich, Alidzhan Ibragimov and Patokh Chodiev (own 14.59 percent of ENRC each) and the Kazakhstan Government (in the person of the State Property and Privatization Commission of the Finance Ministry that owns 11.65 percent in ENRC stake) do not preclude creation of a consortium to promote bidding for ENRC stock. ENRC is an integrated group working in minerals production and enrichment sector. The group’s industrial assets are located mainly in Kazakhstan. Outside Kazakhstan, ENRC owns assets in Brazil, Zambia, Zimbabwe, South Africa, Mali, Mozambique and Congo. ENRC is listed at London, Hong Kong and Kazakhstan Stock Exchange.