Share

Rio Tinto to pay ex-CEO R71m in bonuses amid ongoing investigations

Rio Tinto Group will pay former Chief Executive Officer Sam Walsh about A$6.8 million (around R71 million) in bonuses withheld amid probes related to an African iron ore project, despite the miner’s concerns that the investigations remain in progress.

London-based Rio will release Walsh’s full entitlements of short-and-long term bonuses following an independent dispute resolution process, the former executive said Thursday in a statement. The process was triggered after the two sides couldn’t reach agreement to extend deferral of the incentive plan awards, the company said in its own statement.

Walsh retired from his post in July 2016, months before Rio announced that it had alerted authorities, including the US Department of Justice and the UK’s Serious Fraud Office, about payments related to the Simandou iron ore project in Guinea.

Investigations are centered on a $10.5 million payment to an external consultant in 2011 for assisting on negotiations with Guinea’s President Alpha Conde.

Rio believed an extension to a 2017 agreement to delay the bonus payments "was appropriate given that the regulatory investigations in relation to the Simandou matter are ongoing," though agreed to comply with the outcome of the dispute process, the company said Thursday in its statement.

Walsh, who was head of iron ore at the time the payment was made, has previously said that he always acted lawfully. The resolution of the dispute process in his favor showed "there is no basis for those awards to be further deferred," he said on Thursday. Rio in 2016 terminated the contracts of two executives in relation to the Guinea inquiry.

Rio is continuing to cooperate with international authorities in their investigations into the consultant payments, the company said last month in an annual report.

Meanwhile, Simandou is moving closer to potential development. China is poised to give the go-ahead for some of its biggest state-owned companies to back the project, people familiar with the matter said this month.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.91
+0.1%
Rand - Pound
23.87
+0.1%
Rand - Euro
20.38
+0.2%
Rand - Aus dollar
12.31
+0.2%
Rand - Yen
0.13
+0.1%
Platinum
908.05
+1.2%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent-ruolie
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders