China
Rio Tinto China executives charged with bribery
A Rio Tinto executive faces seven years in a Chinese prison after prosecutors formally charged him today with bribery and violating commercial secrets.
Stern Hu, an Australian citizen, and three Chinese colleagues in the Anglo-American mining group are accused of "using improper means to obtain commercial secrets about our country's steel businesses", the official Xinhua news agency reported.
"The procuratorial organ conducted investigations and believes that it has evidence that the four, including Stern Hu, are suspected of the above crimes," it added.
The more serious accusation of violating state secrets was not mentioned. Prosecutors will now decide whether there is enough evidence to put the men on trial.
According to Article 219 of China's Criminal Code, under which Mr Hu was arrested, he and his colleagues, Liu Caikui, Ge Minqiang and Wang Yong, face up to seven years in prison if found guilty.
Neither the Australian Government nor Rio Tinto has been informed of Mr Hu's arrest, according to spokesmen for the Department of Trade and Foreign Affairs and the company.
A spokesman for Rio Tinto said that it was still trying to get details.
Mr Hu, the Shanghai-based chief negotiator of iron ore sales, was arrested five weeks ago on suspicion of spying on China's steel mills.
Executives of Rio have consistently denied that Mr Hu was involved in spying or taking bribes. Yesterday, Sam Walsh, head of Rio’s iron ore division, said that the company had not been shown any evidence to support China's claims. "We are still not aware of any evidence that would support their detention,” Mr Walsh said.
The arrest of Mr Hu and his colleagues came during intense negotiations over iron ore prices. Reports by China's state media have suggested that executives at Chinese steel mills, the primary buyers of iron ore, gave Rio information that strengthened the company’s position in price negotiations.
(Published by Times Online - August 12, 2009)