Monthly Archives: October 2017

Fraud at the highest level: Tom Albanese and Guy Elliot may be banned from directorships

Albanese with Zambian government ministers on behalf of Vedanta in 2014

Albanese with Zambian government ministers on behalf of Vedanta in 2014

20th October 2017. On Tuesday the Securities and Exchange Commission filed a fraud case against Rio Tinto and two of its executives Tom Albanese (until recently Vedanta’s CEO) and Guy Elliot for inflating the value of a misguided coal deal with Mozambique in 2011. Rio Tinto was immediately fined £27.4 million by the Financial Conduct Authority in the UK for breaching UK listing rules. Albanese and Elliot now face major fines for ‘ill gotten gains’ plus interest, as well as a ban on serving as directors of any public company.

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Albanese presided over multiple human rights violations while serving as Rio Tinto CEO, and was finally forced to leave in 2011 following the disastrous $44 billion dollar decision to merge with Alcan in 2007 that had written off $9 billion, followed by the failed Mozambique coal deal (see previous article on this website). Guy Elliot has exercised considerable influence  over India’s mineral policy, telling Indian decisions-makers it should include a fast-track clearance procedure, and allow ‘security of tenure’, i.e. grant long-term lease rights to foreign mining companies in a speech at the India-UK Business Leaders’ Forum in June 2006.

Please read the Financial Times article: Rio Tinto charged with fraud in US and fined in UK  for more information.

Victory for Zambian farmers suing Vedanta in UK

Anil Agarwal at Vedanta AGM protest 2017, London13th October 2017. Judges today threw out Vedanta’s appeal to the May 2016 High Court judgment allowing Zambian farmers to have their case against the company heard in the UK. The judgment adds further weight to precedents holding UK companies legally responsible for the actions of their subsidiaries.

Judges today released their verdict on Vedanta’s appeal in the case of the Chingola communities suing UK company Vedanta Resources, and their Zambian subsidiary Konkola Copper Mines (KCM), for pollution causing illness and loss of livelihood.

Press coverage:  New York Times – Zambian Villagers Win Right to Sue Vedanta in English Courts

Newsclick – Zambian villagers can now sue Vedanta in England over poisoning their water.

Legal analysis at Lexology.com – Jurisdiction and parent company liability – Court of Appeal keeps door ajar for extra-territorial human rights related claims

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