Bribery Rife in Rio Tinto China Operation: Court

Court documents in the Rio Tinto case obtained by The Age show rampant bribery by imprisoned executive Stern Hu:

…The discussion of bribery is damning. Huge sums of cash were stored in third party bank accounts – with the bribe-takers given cash cards – or directly handed over in dark green plastic shopping bags and cardboard boxes.

The cash transactions took place in hotels, airports, casinos, nightclubs and even a restaurant in the office tower where Rio Tinto has its Shanghai headquarters.

It says Hu demanded a ”30 per cent commission” – disguised as a ”consultancy agreement” – in return for giving a long-term contract to a Tangshan company via a Hong Kong agent.

Hu channelled that $US798,000 commission through a friend’s bank account in Hong Kong and another in mainland China before withdrawing $US300,000 and stashing it in a safety deposit box in his Shanghai home.

See also “Bribery pays: court reveals iron ore corruption,” also by John Garnaut, in the Sydney Morning Herald. Read more about the Rio Tinto case via CDT.

April 16, 2010 12:36 PM
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