By James Simons-
The chief executive of the Eurosian Resources Group company(ERG), Benedict Sobatka, is battling an arrest warrant from the Serious Fraud Office(SRO) until he is told in what capacity he is wanted for questioning.
The Serious Fraud Office (SFO) issued an arrest warrant on Friday for Sobatka, the ERG boss, over his failure to appear for questioning. However, a representative of Sobotka, said he would be willing to assist once the SFO clarifies whether he would be appearing in a personal capacity or as a representative of ERG. Kevin Roberts of Morrison & Foerster (UK) LLP, representing Sobotka, said.“Sobotka was never an employee of ENRC. He was appointed as CEO of ERG- a different corporate entity not under investigation, three years after the period being investigated by the SFO,” Roberts said.
A statement on Friday from the Serious Fraud Office said it was taking the ‘rare but necessary step’ because Benedikt Sobotka had failed to appear for questioning in an ‘ongoing corruption investigation into Eurasian Natural Resources Corporation (ENRC) and related companies’. However, there have been no developments so far on Monday, and the wanted man is refusing to present himself until the SFO clarifies the capacity in which he is wanted for questioning. Insiders from the ERG Group told The Eye Of Media.Com that Sobatka’s name will ”eventually be cleared”, and that it is important for the grounds on which he is wanted for questioning to be clarified first.
The SFO’s investigation into ENRC is centered on allegations of serious fraud, bribery and corruption in relation to the acquisition of substantial mineral assets. ENR have strenuously denied the allegations, but the SFO are calling for more co-operation with regards to questioning.
The Luxembourg registered Eurasian Resources Group S.a.r.l. (ERG) is a leading diversified natural resources company with the integrated mining, processing, energy, logistics and marketing operations.
ERG is the world’s largest ferrochrome producer by chrome content, and is also one of the key producers of iron ore and alumina worldwide. The group boasts a portfolio of production assets and development projects on four continents, being one of the major employers in the industry. Globally the Group is represented by over 80.000 employees.
37 year old Sobotka is wanted for prosecution of an offence of failing to comply with a direction, contrary to sections 2 and 13 of the Criminal Justice Act 1987. Under the statute, the serious Fraud Office(SFO) have the powers to search property and require persons to answer questions and produce documents. Persons of interest to investigations are always given notice when required for interviews. Those in receipt of such notice can include individuals or organisations like banks or financial institutions. Once issued with Section 2 notices, parties of interest to investigations are obliged to lawfully give the information required.
Sobatko is wanted by the SFO for failing to comply with a given notice. Failure to appear for interview to answer questions without reasonable excuse carries a prison sentence of up to six months and an unlimited fine.
A separate battle between the SFO and ENRC which surrounds legal professional privilege has been heard in the Court of Appeal. ENRC is appealing a High Court order in consistence with the SFO’s belief that confidential documents ENRC prepared for its own internal investigation should not protected by legal privilege. Legal privilege protects all communication between a barrister and his client from being disclosed without the permission of the client.
The High Court will decide on the question of legal privilege which normally should be granted protection, but may be subjected to different rules and reasoning in cases of fraud or corruption.