Ferrexpo PLC (LON:FXPO) said an independent review into the use of funds by its charity partner in Ukraine has found a number of discrepancies that have “not been possible to explain”.

The iron ore miner established an independent review committee (IRC) to look into controversial donations to charity Blooming Land after Deloitte quit as its auditor in April.

Deloitte resigned over claims Ferrexpo delayed the launch of a full, independent investigation into the possible misappropriation of funds by Blooming Land, a foundation set up to manage the company’s charitable work in Ukraine.

Ferrexpo had given US$110mln to Blooming Land between 2013 and May 2018 when it stopped payments and terminated its relationship with the charity.

In a Friday statement, Ferrexpo said: “Whilst a significant amount of work has been undertaken by the IRC and its advisers, it has not been possible to explain a number of discrepancies outlined in the 2018 annual report relating to the charity and its use of funds donated by Ferrexpo,” Ferrexpo said.

“As a result, the IRC has been unable to conclude as to the ultimate use of all of the funds by the charity, a third party.

“Indications therefore remain that some of the funds could have been misappropriated. The board is considering further steps in this regard.”

The company said the IRC is satisfied that none of Ferrexpo’s directors, management or employees had any involvement in any possible misappropriation of funds. 

It added that it was aware of various tax and other investigations in Ukraine in connection with the matter and these are being monitored by the independent committee.

“The company will keep the market informed of any developments, as appropriate,” Ferrexpo said.

Shares in the company fell initially on Friday but before long were up 3% to 203.9p.