The French mining group Eramet announced Tuesday, December 21 that it had identified a financial fraud within the cash management of its headquarters.
The damage is estimated at 45 million euros “To date, before insurance and implementation of legal actions”. A considerable sum in absolute terms, and in view of the size of the company. The amount of the alleged fraud amounts to almost half of the group’s operating profit for 2020 (106 million euros).
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The fraud was discovered on Monday, December 20. The audit committee was then convened. Then an emergency board meeting was organized at 7:30 p.m. the same day to inform its members of the situation. The fraud being substantial, Eramet had to warn the markets on Tuesday morning, at the same time as its internal employees.
The group “Immediately launched the necessary investigations, mobilized all internal and external resources required to put an end to these fraudulent activities” and a “Took disciplinary measures with immediate effect against identified personnel”, he said in a press release. At this time, only one person has been sanctioned but the investigation is continuing. The company specifies that it will now file a complaint and initiate “Palliative actions” to limit the impact on its accounts of fraud. She is also considering strengthening her “Internal control system”.
The 45 million euros embezzled will be recorded “In operating income for the 2021 financial year”, warns Eramet, which will publish its annual results on February 23. “Headquarters cash flow is affected, but the subsidiaries are not affected”, specifies a spokesperson. Asked by Le Figaro, the group refuses for the moment to give more details on the nature of the fraud. The Eramet share sold 0.64% on Tuesday, December 21, to 69.90 euros.