Three of Glencore's directors, including CFO Steve Kalmin, to serve on the board of subsidiary company, Katanga Mining
This follows the completion of Katanga’s internal review of certain past accounting practices, which revealed material weaknesses in the company’s internal controls over financial reporting. Kalmin and his two executive colleagues will work with TSX-listed Katanga’s independent directors to implement the required remediation measures to strengthen the subsidiary’s corporate governance, compliance and control processes.
Katanga said in a statement to shareholders:
“The company has concluded that it did not adequately establish and enforce a strong culture of compliance and controls, which includes the adherence to policies, procedures and controls necessary to present financial statements in accordance with the International Financial Reporting Standards (IFRS).”
It added that each of the material weaknesses found created a “reasonable possibility that a material misstatement of the company's yearly financial statements or interim financial reports would not be prevented or detected on a timely basis.”
In light of this, Jacques Lubbe, Katanga CFO resigned with immediate effect. He was replaced by Grant Sboros.
Moreover, Katanga directors Liam Gallagher, Aristotelis Mistakidis and Tim Henderson stepped down from the board, replaced by Mike Ciricillo, Tony Moser and Steve Kalmin.
