ASIC takes action against Rio Tinto CEO and CFO for misleading and deceptive conduct

ASIC has launched legal proceedings in the Federal Court against two former leaders of Rio Tinto (ASX: RIO), CEO Thomas Albanese (pictured) and CFO Guy Elliott, accusing the duo of misleading and deceptive conduct surrounding Rio Tinto’s 2011 Annual Report.

In December 2010, Rio Tinto announced a takeover offer for Riversdale mining Limited which was completed in August 2011 at a total cost of over US$4 billion.

Following the acquisition, Rio Tinto delisted Riversdale and renamed it Rio Tinto Coal Mozambique (RTCM).

In January, 2013, Rio Tinto announced it expected to recognise a non-cash impairment charge of around US$14 billion in its 2012 full year results, which included approximately US$2 billion relating to RTCM. Albanese also stepped down from his role as CEO at the time.

ASIC’s legal proceedings relate to an allegation that RTL engaged in misleading or deceptive conduct by publishing statements in the 2011 annual report, signed by both Albanese and Elliot, misrepresenting the reserves and resources of RTCM. Read more

David Simmons – Business News Australia – 2 Mar 2018