Money Matters, Simplified.
Rio employees' facing trial; Stern Hu pleads guilty
by Jaspreet Virk - March 22, 2010 - comments
Though the Chinese authorities have charged the four employees for seeking details about mines and steel mills in the country, Rio has rebuffed allegations saying that its employees did nothing wrong.
Rio Tinto’s employee Stern Hu, an Australian citizen, has pleaded guilty to charge of bribery in a Shanghai court, according to a lawyer.
Hu is one of the four employees of the Rio Tinto Group who is facing trial in the Shanghai No. 1 Intermediate People’s Court Monday. The hearing began at 8:30 a.m.
The Rio Tinto employees, Liu Caikui, Wang Yong, Ge Minqiang, and Stern Hu, are being tried in the court for charges of commercial bribery, and infringement of trade secrets, almost after nine months from being arrested.
The charges could be related to the iron ore price talks that took place in 2009. The Chinese steel makers had failed to reach consensus over prices with Rio, which is the second biggest supplier of iron ore.
Though the Chinese authorities have charged the four for seeking details about mines and steel mills in the country, Rio has rebuffed allegations saying that its employees did nothing wrong.
A part of the trail open
All permits to attend the trail have been given out and only a part of the trail, related to charges of commercial bribery is open to the Australian officials.
For infringement of trade secrets and commercial bribery, the four Rio employees could face a sentence varying from few months to several years.
The other part of the hearing, which deals with violation of trade secrets, will be held in a closed court.
Media coverage to the hearing, which is open, has to be pre-approved. For instance China Central Television, the nation’s broadcaster, has been allowed to attend the trial. Foreign media and general public have be forbidden from entering the court.
The decision by the Chinese authorities to only open a part of the trial has been criticized by Canberra, who believe that they should be allowed to attend the entire proceedings.
Eagerly awaiting outcome
The outcome of the trial is being eagerly awaited as the case is of critical importance to all those who are conducting business operations in the country.
In a statement Rio Tinto’s Chief Executive Tom Albanese said, "This issue is obviously of great concern to us, as it would be for any company operating in China. I can only say we respectfully await the outcome of the Chinese legal process."
For infringement of trade secrets and commercial bribery, the four Rio employees could face a sentence varying from few months to several years.
Albanese is scheduled to address a closed-door conference in Bejing later today.