Rio Tinto pays $15 million penalty over SEC bribery allegations www.bloomberg.com
Rio Tinto agreed to pay a $15 million penalty over US bribery allegations related to the company’s efforts to retain valuable mining rights in Guinea.
The Securities and Exchange Commission said that about a decade ago, a consultant working for Rio Tinto tried to bribe a Guinean government official. Additionally, the global mining and metals firm didn’t properly record its payments to the person, the SEC said on Monday, adding that the company had inadequate accounting controls.
Rio Tinto agreed to the penalty without admitting or denying the violations, according to the SEC. The regulator said the conduct was in violation of the Foreign Corrupt Practices Act.
“We are glad to have resolved this matter related to events that occurred over a decade ago on appropriate and reasonable terms,” Dominic Barton, the company’s chairman, said in a statement. “When Rio became aware of the issue, an internal investigation was immediately launched, and we proactively notified the appropriate authorities.”
Monday’s resolution stems from an investigation into conduct that hearkens back to 2011, when Rio Tinto hired a French investment banker as a consultant to help with the mining rights issue in Guinea, the SEC said.
The banker, according to the SEC, offered more than $800,000 to a Guinean government official in an attempt to retain the mining rights. Rio Tinto, which was able to keep them, paid the consultant $10.5 million for the work.
Published Date:2023-03-07