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Endeavour used Linklaters for CEO probe despite independence concerns

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Endeavour used Linklaters for CEO probe despite independence concerns

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Endeavour Mining turned to its longstanding law firm, Linklaters, to undertake investigations into its ousted chief executive, Sébastien de Montessus, despite complaints from employees at the gold producer about the firm’s independence, according to three people familiar with the matter.

Critics within the company who spoke to the Financial Times maintain that Linklaters’ relationship with Endeavour — which flourished under the tenure of De Montessus and earned the “magic circle” law firm millions of pounds — meant it lacked the independence necessary for impartial investigations into the CEO’s behaviour.

The FTSE 100 gold mining group fired long-term boss De Montessus earlier this month after the board found evidence that he instructed an irregular $5.9mn payment.

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De Montessus fought back, saying that while he did not notify the board of the payment, it was made to provide urgent security services. Linklaters handled the forensic accounting investigation into the payment instruction with EY, the FT has previously reported.

At the time of the dismissal, Endeavour also said the board would consider next steps following a probe into De Montessus’s personal conduct with colleagues. Endeavour did not specify what allegations had been made about his behaviour. That probe was also conducted by Linklaters.

The miner said on Friday that it “strongly stood” by its original statement. A person close to the company said Linklaters was appointed following careful consideration of their relevant expertise and safeguards implemented to ensure the impartiality of the investigation.

For his part, De Montessus has said he is assessing his legal position after “an independent investigation by Linklaters did not uphold any of the personal conduct allegations”.

The scandal at Endeavour marks a blot on one of the London market’s few recent success stories after it grew from a market capitalisation of about $1.5bn to almost $7bn at its peak through aggressive dealmaking under the charismatic French CEO.

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Endeavour employees raised concerns directly with at least one board member as well as with the law firm about its independence during the course of the investigations, according to the communications seen by the FT and people familiar with the matter.

Linklaters’ services to Endeavour while De Montessus was CEO spanned advising on its IPO, corporate bonds, M&A activities and corporate governance. This included guidance to the board after French authorities put De Montessus under judicial inquiry in 2018 for alleged corruption when he was at Areva, the French nuclear group. The French authorities’ inquiry — in which De Montessus denies wrongdoing — is continuing.

Ian Hunter, a corporate partner at Linklaters, was in charge of managing the relationship with Endeavour. The law firm advised Endeavour’s board on De Montessus’s remuneration package by which he earned $22.7mn in 2021, the most of any FTSE 100 CEO.

Linklaters also acted for the company in relation to the dismissal of a string of senior executives and board members from the company starting from early 2022 who tried to call out lapses in corporate governance and concerns about De Montessus’s behaviour, the people familiar with the matter said. The law firm’s advice included drafting non-disclosure agreements, they added.

Henri Servaes, a corporate governance professor at London Business School, said that in the case of an investigation into sensitive matters involving senior personnel, it is better to hire a law firm that has no previous dealings with the company.

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“The bottom line is that in these kinds of circumstances you want to avoid any appearance of a conflict of interest. Any appearance of a conflict — even if it is totally properly managed and there are no biases at all — is just not good for the optics of the matter.”

Law firms are frequently brought in to conduct internal investigations for their clients, which are often handled by lawyers from different teams within the firm. It is usually up to the discretion of the company and the law firm to determine the scope and reporting lines for an investigation and who is privy to the information.

“We are committed to the highest standard of honesty and integrity and to conducting ourselves in accordance with applicable professional obligations,” Linklaters said in a statement.

“We have robust processes in place to safeguard against conflicts of interest,” the firm added.

De Montessus declined to comment.

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Crowds ordered to evacuate National Mall area as stormy weather slams DC

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Crowds ordered to evacuate National Mall area as stormy weather slams DC

The thousands of people attending the Great American State Fair and other areas around the National Mall are being ordered to evacuate as stormy weather approaches.

The National Weather Service previously announced a Severe Thunderstorm Warning in the District. Officials are asking attendees to seek shelter.

SEE ALSO: Historic Fourth of July fireworks to light up National Mall: How to watch live

The DC Homeland Security & Emergency Management released a list of places where the crowds can go to get out of the weather:

Federal Buildings:

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  • Ronald Reagan Building – 100 Pennsylvania Ave NW
  • Dept. of Commerce – 1401 Constitution Ave NW
  • Dept. of Agriculture – 1400 Independence Dr SW
  • Dept. of Education – 400 Maryland Ave SW
  • Internal Revenue Service – 1111 Constitution Ave NW
  • Voice of America – 330 Independence Ave SW
  • Thomas Jefferson Memorial – 16 E Basin Dr SW

Museums:

  • National Museum of American History – 1300 Constitution Ave NW
  • National Museum of Natural History – 1000 Constitution Ave NW
  • National Museum of African American History and Culture – 1400 Constitution Ave NW

Freedom 250 organizers released this statement:

“The safety of our guests, performers, and staff is our top priority. Due to approaching severe storms, Freedom 250, United States Secret Service, United States Park Police, National Park Service, the Federal Emergency Management Agency, and all public safety partners are asking all guests to evacuate event grounds and seek temporary shelter in a nearby building. Available shelter locations include the Department of Commerce, Department of Education, Department of Agriculture, Internal Revenue Service, VOA Building, Thomas Jefferson Memorial, National Museum of American History, National Museum of Natural History, the African American Museum, and the Ronald Reagan Building. Please remain calm, follow the directions of law enforcement and event staff, and stay tuned to Freedom 250’s official channels for updates. Freedom 250 will share updates on programming and doors reopening — please stay close to our official channels for updates.”

The Secret Service said they have suspended screening on the National Mall.

“Security screening on the National Mall has been suspended due to dangerous storms,” the Secret Service said. “If you are already on the grounds, follow directions from officers and event staff and move to shelter immediately. Do not shelter under trees.”

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Metro riders are also asked to seek shelter. Commuters should expect heavy crowds at stations near the National Mall and are asked to consider using L’Enfant Plaza, Metro Center, Archives, Federal Triangle or Federal Center SW stations to avoid congestion.

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Reflections on America’s 250th birthday

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Reflections on America’s 250th birthday

The nation’s capital may be the focal point of the 250th Independence Day celebration, but people all across America have plans to mark the occasion, from boisterous public parades to quiet personal reflections on history.

Julia Demaree Nikhinson/AP


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Julia Demaree Nikhinson/AP

As the United States turns 250 years old, Americans across the country are spending the holiday thinking about what the big birthday means to them, with reflections and celebrations as diverse as the nation itself.

NPR’s member station reporters fanned out to collect snapshots of the occasion from sea to shining sea.

In one ‘City of Presidents,’ Main Street is decorated for a party

At least two cities in the U.S.call themselves the “City of Presidents” and Cuba City, in Wisconsin, is one of them, largely due to its patriotic Main Street decorations. Every year from Memorial Day through Veteran’s Day, red, white, and blue shields, one for each U.S. president, are prominently displayed high up on the light poles lining Main Street.

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It’s a tradition that began in 1976 to commemorate the country’s bicentennial, says Donna Rogers, who is president of the ongoing project but admitted that when it first started, she wasn’t particularly tuned-in to the display.

“I was raising three little boys and working at John Deere, so I didn’t really pay too much attention to community service at that time,” she said.

Donna Rogers shows off one of Cuba City's presidential lampposts.

Donna Rogers shows off one of Cuba City’s presidential lampposts.

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A few years later, she was tapped to help keep the initiative alive.

When she thinks of the country’s history, she says the signing of the Declaration of Independence and abolition of slavery top her list, plus a current event–

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“Of course, now, our nation’s 250th birthday. I think those three would be the three most important things in history to me,” she said, quickly adding “[the] right for women to vote, don’t forget that, right?”

Rogers and Cuba City are pulling out all the stops for the 250th, with a parade and a mac-and-cheese festival, because “that was some of our founding fathers favorite foods, along with turkey and cranberries and other items.”

She laughed and admitted she googled that. True or not, Rogers says they’ll go all-out to celebrate the 250th in her “City of Presidents”.

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Family-owned company prepares to put on the largest fireworks display in history: “It is the biggest show that we’ve ever done”

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Family-owned company prepares to put on the largest fireworks display in history: “It is the biggest show that we’ve ever done”

Washington — There are fireworks, and then there’s what’s in store for Saturday in Washington, D.C.

When the sun goes down on Independence Day, the skies of Washington are expected to fill with a record-setting 850,000 individual fireworks for a 40-minute spectacle like no one has seen before.

A company called Pyrotecnico will attempt the biggest fireworks show in history, using five generations of family know-how and a background in Super Bowls and large musical acts to help America celebrate its 250th birthday with a bang.

“I mean, it is the biggest show that we’ve done,” Rocco Vitale, president of Pyrotecnico, told CBS News. “…My earliest memories of fireworks displays and doing the Fourth of July was here.”

Pyrotecnico has been planning this year’s show since January, using computers to simulate the display. But now it’s time for the real thing.

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Vitale gave CBS News an exclusive look at his not-so-secret weapons: eight barges out on the Potomac River, each one ready to light up the night sky.
 
“Each firing location has a communication device, and its all set on GPS. And once the time of the show is put into the system, it goes at that time,” Vitale explained.

According to Freedom 250, the organizer of the “Salute to America 250 Celebration & Fireworks” on the National Mall, President Trump will deliver remarks at 9:45 p.m. Eastern Time, and the fireworks display will get underway at 10:45 p.m. The event is expected to draw hundreds of thousands of people.


Join CBS for “The Great American Block Party 250,” a primetime special on Saturday, July 4, hosted by CBS Evening News anchor Tony Dokoupil and Entertainment Tonight’s Nischelle Turner, featuring live musical performances, celebrations around the country, and the largest fireworks show in history in the skies over the nation’s capital. Tune in July 4 at 8 p.m. ET on CBS and stream it on Paramount+ and CBS News 24/7.

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