Rio Tinto terminates convicted employees
29 Mar 2010
Rio Tinto today announced that it has terminated four of its employees in China, including Stern Hu, after they were found guilty by a Shanghai Court of accepting bribes and stealing commercial secrets.
Sam Walsh, chief executive, Rio Tinto Iron Ore, said, "Receiving bribes is a clear violation of Chinese law and Rio Tinto's code of conduct, 'The Way We Work.' 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.''
The termination came after a Chinese court today sentenced four employees of Anglo-Australian mining giant Rio Tinto with jail terms of 7 to 14 years on bribery and commercial secrets charges, including 10 years to Stern Hu, the lead negotiator of the miner in the iron ore benchmark talks. (See: Chinese court hands stiff jail term to Rio Tinto employees)
Tom Albanese, chief executive of Rio Tinto, said, "All our employees are required to adhere to our strict policies on how we do business, and to abide by the laws of the countries where we operate. Ethical behaviour is at the heart of everything we do. We have earned a strong reputation for our ethics through our long track record of responsible business practice.
"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."
The London-listed mining giant shrugged off any wrongdoings on the part of the company and said that the illegal activities were conducted wholly outside its systems.
