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Spirongate four shown the door

Author: Andy Pierce in London Posttime:2010-03-30 07:47:13
Rio Tinto has sacked all four of its staff caught up in the Chinese bribery and corruption scandal.

Rio had staunchly defended the quartet after the affair blew up last year but it now admits China produced clear evidence of their wrongdoing during a trial.

Tom Albanese, CEO of Rio Tinto, said in a statement: "I am determined that the unacceptable conduct of these four employees will not prevent Rio Tinto from continuing to build its important relationship with China.

"This is a high priority for me personally."

As TradeWinds reports today the now former Rio four were hit with jail sentences of up 14 years after being found guilty of commercial espionage and accepting bribes in China.

Stern Hu, Rio's top iron ore salesperson in China, has been sent down for 10 years.

His colleague, Chinese national Wang Yong, received a 14-year term, while Ge Minqiang was given eight years and Liu Caikui seven.

Sam Walsh, chief executive Rio Tinto Iron Ore, said: "We have been informed of the clear evidence presented in court that showed beyond doubt that the four convicted employees had accepted bribes.

"By doing this they engaged in deplorable behaviour that is totally at odds with our strong ethical culture. In accordance with our policies we will terminate their employment."

Walsh says Rio appointed independent forensic accountants and lawyers to spearhead an official investigation after the quartet were first detained in July last year.

"It did not uncover any evidence to substantiate the allegations of wrongdoing. Rio Tinto has concluded that the illegal activities were conducted wholly outside our systems," Walsh said.

Walsh and Rio had previously been avid defenders of the four caught up in the saga, dubbed Spirongate.

Claims of bribery involving Chinese steel mill officials were continually dismissed as wholly without foundation.





source:Tradewinds
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