Rio Tinto sacks four executives jailed i…
Rio Tinto, the Anglo-Australian mining giant, has sacked four iron ore executives after a Chinese court sentenced them to jail terms ranging from seven to 14 years for commercial espionage and taking bribes.
Within hours of Australian citizen Stern Hu and his three Chinese colleagues being convicted, Rio Tinto to limit damage to its business interests in China.
The company announced it had sacked the four executives and said it hoped the case would not affect its trade with the world’s largest steel producer.
Mr Hu, Wang Yong, Ge Minqiang and Liu Caikui all pleaded guilty to accepting bribes during negotiations over iron prices, but disputed the amounts and aspects of the accusations. One of the four had admitted to commercial espionage.
Sam Walsh, the company’s iron ore chief executive, described the behaviour of the four workers as “deplorable”.
He said: “We have been informed of the clear evidence presented in court that showed beyond doubt that the four convicted employees had accepted bribes.”
Mr Walsh declined to comment on the charges of stealing commercial secrets which were heard in a closed court last week, because the company “has not had the opportunity to consider the evidence”.
Mr Hu was sentenced to seven years for taking bribes and to five years for stealing business secrets, the Shanghai Number One Intermediate People’s Court ruled.
The court said Mr Hu would serve parts of the sentences concurrently, reducing his jail term to 10 years. Mr Wang, accused of taking 75 million yuan (£7.5 million) in bribes, received the longest sentence, of 14 years.
The two other Rio staff, Mr Ge and Mr Liu, were sentenced to eight years and seven years respectively.
All four stood passive while the sentences were read out. Mr Hu’s usually dyed black hair was now white. Tao Wuping, a lawyer for Mr Liu, said: “I think all of them were already mentally prepared to appeal both the bribery and secrets convictions.”
Jin Chunqing, a lawyer in the Mr Hu’s team, said the defence team were gathering to decide their next step. He said: “We haven’t decided yet if we would appeal.” Appeals in China have about a one per cent chance of success.