Rio Tinto rocked by corruption scandal

Rio Tinto has been rocked by a corruption scandal that could have far-reaching consequences for the world’s second-largest miner.

Image credit: www.riotinto.com. Photographer: Christian Sprogoe PhotographyDate: 27 July 2009
Image credit: www.riotinto.com

The scandal erupted after the company discovered unexplained payments totalling US$10.5 million made to a consultant providing advisory services on the Simandou project in Guinea.

Rio Tinto has already taken concrete measures to get to the bottom of this scandal, suspending one senior executive and accepting the resignation of another.

“The company launched an investigation into the matter led by external counsel. Based on the investigation to date, Rio Tinto has today notified the relevant authorities in the United Kingdom and United States and is in the process of contacting the Australian authorities,” Rio Tinto said in a media statement.

“Energy & Minerals chief executive Alan Davies, who had accountability for the Simandou project in 2011, has been suspended with immediate effect. Legal & Regulatory Affairs group executive Debra Valentine, having previously notified the company of her intention to retire on 1 May 2017, has stepped down from her role.”

Rio Tinto said it will co-operate fully with any subsequent inquiries from all of the relevant authorities.

“Further comment at this time is therefore not appropriate,” reads the statement.

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