Regulator concludes probe into former Rio exec over Guinea dealings – Reuters

The Australian Securities and Investments Commission, or ASIC, closed its probe into former Rio Tinto Group executive Alan Davies over $10.5 million in alleged payments made to a consultant working on the Simandou iron ore project in Guinea, citing insufficient evidence, Reuters reported Oct. 22, citing a letter from the regulator.

"ASIC has concluded its investigation on the basis that there is insufficient evidence to establish to a court that there has been a breach of the law," ASIC reportedly said in an Oct. 19 letter addressed to Davies.

The investigation covered the director's duties such as care and diligence and operating in good faith, obligations of honesty, and true and correct books and records, Reuters said.

An ASIC spokesperson told Reuters that the regulator may "recommence its investigation or commence enforcement action if circumstances change." Davies and Rio Tinto had no immediate comment, the report said.

In November 2016, Rio Tinto dismissed Davies as its Energy and Minerals chief executive after it became aware of emails from 2011 related to the payments.

In July 2017, the U.K.'s Serious Fraud Office launched a probe into Rio Tinto's Simandou-related dealings, and the company reportedly entered into a deferred prosecution agreement in July 2020 to avoid bribery charges. The Australian Federal Police also launched its own investigation in March 2017.