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China court jails Rio Tinto four

4:30pm GMT, Monday, 29 March 2010

Four Rio Tinto workers have been jailed in Shanghai after a trial lasting just two days. Four Rio Tinto workers have been jailed in Shanghai after a trial lasting just two days.

Four Rio Tinto employees have been jailed in Shanghai, China, today (29 March 2010) after being found guilty of receiving bribes and obtaining commercial secrets.

The four men – Australian Stern Hu, Wang Yong, Liu Caikui and Ge Minqiang – were detained in Shanghai on 5 July 2009 on allegations of obtaining Chinese steel industry commercial secrets and allegations of commercial bribery – receiving bribes by non-State personnel.

At the outset, Rio Tinto said it was fully behind its employees in defending them from the allegations and urged the Shanghai court for a transparent and expeditious process. Throughout the ordeal the company said it had maintained regular contact with the workers’ families.

However, although internal investigations revealed no internal wrongdoing, Rio Tinto concedes that evidence has been clear that the four were guilty.

Australian Stern Hu – who has been fully supported by his government – was sentenced to 10 years in prison, Wang Yong 14 years, and Liu Caikui and Ge Minqiang were sentenced to seven and eight years respectively. All were reportedly fined and also had assets seized in the process.

Sam Walsh, Chief Executive of Rio Tinto Iron Ore, commented on the verdict: “Receiving bribes is a clear violation of Chinese law and Rio Tinto’s code of conduct.

“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.”

Mr Walsh said that without question the four would have their employment terminated, and that the company had already implemented improvements to procedures and will “spare no effort in doing everything we can to prevent any similar activity.”

Tom Albanese, Chief Executive, added: “I am determined that the unacceptable conduct of these four employees will not prevent Rio Tinto to build its important relationship with China.”

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