Fortescue probed claims of Andrew Forrest’s ‘relationship with employee’

Amid the split of Australia’s richest couple, Andrew Forrest was subject to a secret investigation which cleared him of an anonymous claim.

Fortescue Metals conducted a secret probe into whether its executive chairman, Andrew Forrest, had a relationship with an employee — a claim he has now been cleared of by the investigation — a week after the mining magnate announced he had split with his wife of 31 years.

In a statement to news.com.au a spokesman for the mining giant said the directors of the company “became aware of an anonymous letter concerning the behaviour of the Executive Chairman”.

“The Board immediately met and engaged Seyfarth Shaw LLP, to independently investigate the letter and provide a report. Seyfarth Shaw LLP provided a full report to the Board,” the spokesman said.

“The investigation concluded that none of the matters in the letter were substantiated. There were no adverse findings.

“Dr Forrest was excluded from this entire process because it related to him.”

The company said it “remains committed to strong corporate governance and will continue to investigate any items raised in accordance with our whistleblower policy”.

The Financial Review reported the letter referred to an “alleged relationship with an employee” at Fortescue but the company did not confirm this to news.com.au.

Fortescue said the Seyfarth Shaw report would not be released to shareholders or the public.

The former couple say the split won’t affect the strategic direction of their business Fortescue Metals Groups. Picture: Matt Jelonek/Getty Images

An old photo of Mr and Ms Forrest with their daughters Grace and Sophia. Picture: ABC

Last week the mining magnate disclosed he had split with his wife, Nicola Forrest.

In a joint statement, the pair said their “friendship and commitment to our family remains strong”.

They insisted that the strategic direction of their business Fortescue Metals Groups will be unaffected by their split.

“After 31 years of marriage, we have made the decision to live apart. Our friendship and commitment to our family remains strong,” they said.

“There is no impact on the operations, control or direction of Fortescue, Minderoo or Tattarang.”

The couple share three adult children – Grace, Sophia and Sydney.

It is understood they have no plans to divorce.

Sophia Forrest, left, Sydney Forrest and Grace Forrest. Picture: Supplied

The Forrests have previously revealed that their children won’t inherit the vast majority of their wealth, with the fortune instead set to be distributed to a range of charitable causes, including Indigenous support, education reform and cancer research.

Speaking to the ABC’s Australian Story last year, Ms Forrest said she didn’t want her children to be “be burdened” by such immense funds.

“I live in a home and I have a great life – but the things that are most important in life, money doesn’t buy that,” she told the program. “Children don’t benefit from thinking they’re going to inherit a huge amount of money.”

Andrew Forrest pictured at Fortescue Metals’ new Iron Bridge magnetite project in January. Picture: Supplied

Dr Forrest echoed his wife’s sentiment, saying it was an easy move.

“The decision to give away everything but the personal things and goods was easy,” he said. “You know, let’s not die wealthy. What’s the point of that?”

Mr Forrest, known by his nickname “Twiggy”, was ranked the second richest person in the country on The Australian’s rich list this year. He is worth a whopping $35.21 billion.

Fellow iron ore magnate Gina Rinehart (worth $37.1 billion) took out the top spot.

Fortescue is the eighth-largest company on the ASX by market capitalisation.

The statement was sent to the Australian Financial Review initially after the outlet questioned a transaction last month that moved more than $1.1 billion worth of Fortescue shares into a new company called Coaxial Ventures. That company is wholly owned by Ms Forrest.

-with Frank Chung, Chantelle Francis and Tammy Hughes

Originally published as Fortescue probed claims of Andrew Forrest’s ‘relationship with employee’