Rio Tinto Ltd
(ASX:RIO) executive Stern Hu has been sentenced to 10 years behind bars after a Shanghai court found him guilty of taking bribes and stealing trade secrets on Monday.
Three other colleagues of Mr Hu were handed jail sentences of between seven and 14 years.
The Rio employees were also blamed for the collapse of annual iron ore price negotiations between Australia and China last year.
Last night Foreign Minister Stephen Smith said he felt Mr Hu’s sentence was harsh though there was convincing evidence that Mr Hu had accepted bribes.
Mr Smith however said while there still remains some unanswered questions regarding the stealing of trade secrets, which were detailed in closed sessions which Australian officials were not allowed into, he believes the case will not damage Australia’s business relationship with China.
Rio announced last night that it has sacked all four employees. Rio Tinto posted profit of $5.4 billion in 2009.
