More than 20 Chinese companies including Sinochem International have been implicated in the Rio Tinto bribery case, underscoring concerns that illegal practices in mainland iron ore deals are rampant.
According to a person who has seen the court documents, four Rio employees - Australian citizen Stern Hu and his three Chinese colleagues Ge Mingqiang, Wang Yong and Liu Caikui - took bribes from more than a score of mainland steelmakers and trading firms. On March 29, Hu was sentenced to 10 years' imprisonment by the Shanghai No1 Intermediate People's Court on bribery and commercial secret charges. The others received jail terms from seven to 14 years. Sinochem's spokesman was not available for comment yesterday.
Sinochem, listed on the Shanghai Stock Exchange, is a subsidiary of Sinochem Group, one of the largest export-import firms in the country.
The four Rio employees were sacked by the Anglo-Australian mining giant after they were convicted.
The case has threatened China's trade and investment relationship with Western countries, with foreign businesses complaining about the mainland's murky legal system and arcane deal-making practices.
The four Rio defendants either pleaded guilty to bribery charges or admitted that they took part of the money.