Australia Watchdog Closes Probe Into Former Rio Tinto Exec Davies-Letter
Australia's securities watchdog has closed its investigation
into former Rio Tinto Ltd executive Alan Davies over an alleged $10.5 million
payment to a consultant in Guinea, citing insufficient evidence, according to a
letter reviewed by Reuters.
Davies, formerly Rio's Energy and Minerals chief executive,
was fired in late 2016 after Rio Tinto became aware
https://www.reuters.com/article/us-rio-tinto-guinea-terminates-idUSKBN13B2Y4 of
emails from 2011 that referred to payments to the consultant in connection with
its vast Simandou iron ore project in the West African nation.
According to the letter, ASIC's investigation covered
directors duties like care and diligence and operating in good faith,
obligations of honesty, and true and correct books and records. It closed the
investigation on all individuals involved.
"ASIC has concluded its investigation on the basis that
there is insufficient evidence to establish to a court that there has been a
breach of the law," the Australian Securities and Investments Commission
(ASIC) said in the letter, dated Oct. 19 and addressed to Davies.
"As I said in 2016, Rio Tinto did have no grounds to
dismiss me and that continues to be my view," Davies told Reuters.
Rio Tinto had no immediate comment.
ASIC acknowledged the letter, saying it would not take
enforcement action. "We've noted that ASIC may recommence its
investigation, or commence enforcement action, if circumstances change," a
spokesperson said.
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