Andrew Forrest cleared after anonymous letter sparks Fortescue probe

Andrew Forrest was investigated and cleared by lawyers over his behaviour after an anonymous letter was circulated.

Fortescue Metals Group called in investigators to probe an allegation concerning the behaviour of its executive chairman, Andrew Forrest – the latest twist in the billionaire’s business empire just days after separating from his wife after a three-decade long marriage.

Law firm Seyfarth Shaw was called in by Fortescue’s board after directors became aware of an anonymous letter concerning the behaviour of Dr Forrest.

It concluded none of the matters in the letter were substantiated. However, the revelation of the inquiry tops a turbulent period for one of Australia’s most high profile business figures after the decision last week to split with his wife, Nicola Forrest.

“The directors of Fortescue became aware of an anonymous letter concerning the behaviour of the executive chairman,” a Fortescue spokesman said on Sunday night in a statement.

“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 statement added.

“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 probe saw Fortescue hand Seyfarth Shaw full access to electronic records, documents, employees, information and “all resources required by them to conduct a forensic review”, according to the statement.

Dr Forrest and Ms Forrest announced late on Wednesday night that they had “made the decision to live apart”. Ms Forrest’s paper fortune is now about $1.1bn more than that of Dr Forrest after it was confirmed the pair were living separate lives in what is the largest split of wealth in Australian history.

Ms Forrest has one key asset now solely in her name, putting her estimated fortune at $15.46bn – which would be enough for seventh position on The List – Australia’s Richest 250 if it were recalculated now – and about $1.1bn higher than Dr Forrest’s $14.35bn wealth.

The decline in their relationship has been a topic of widespread speculation and gossip throughout Perth’s wealthy western suburbs for a considerable amount of time.

Fortescue said it would keep details of the investigation secret noting it has a number of channels for team members to report complaints either anonymously or in person, in keeping with accepted whistleblower protocols.

“All claims are investigated and action taken where claims are substantiated, with the nature and findings of these matters regularly reported to the board. Consistent with this approach this report will remain confidential,” the statement said.

“Seyfarth Shaw LLP were selected as they have demonstrated expertise in investigations of this nature, and are independent, having never previously provided legal representation to Fortescue or Dr Forrest or his associates. Seyfarth Shaw LLP’s legal fees were not contingent on any particular finding or outcome.”

The investigation was led by Seyfarth Shaw Australian managing partner Darren Perry.

“Fortescue remains committed to strong corporate governance and will continue to investigate any items raised in accordance with our whistleblower policy,” the Fortescue statement concluded.

Dr Forrest returned as the company’s executive chairman last year and has been the driving force behind its ambitious and contentious push to become the dominant player in hydrogen energy.

Fortescue was under pressure for much of 2022 to give investors some clarity on the cost and timeline for any of the dozens of massive green energy and hydrogen projects it has earmarked.

In March Fortescue cut up to 200 jobs as the resources giant juggles work on its mainstay iron ore projects and an emerging green hydrogen business.