Thomas Albanese, Guy Elliott and Rio Tinto face a civil charge of fraud by the SEC over alleged failure to inform markets of plummeting asset values. Elliott also quits the Royal Dutch Shell board.
Image: Rob Bayer/Shutterstock
The former CEO and CFO of Rio Tinto have been charged with fraud by the US Securities and Exchange Commission (SEC), after allegedly inflating the value of its ill-fated Mozambique coal mine acquisition.
Ex-chief executive Thomas Albanese and former chief financial officer Guy Elliott, along with Rio Tinto, face charges of failing to follow accounting standards and company policies to accurately value and record its assets.
The two executives were in situ during Rio Tinto’s $3.7bn (£2.8bn) acquisition of Mozambique coal assets in 2011, which were then sold on for just $50m in 2014. The SEC alleges that problems with the operation wer
For thoughtful journalism, expert insights on corporate governance and an extensive library of reports, guides and tools to help boards and directors navigate the complexities of their roles, subscribe to Board Agenda
The complexities and changing business environment associated with the digital age do not alter the importance of ethical principles, according to a major study of accountants. But that doesn't mean it's going to be easy.