The chief executive of Australia-listed Brockman Mining resigned last week after he was convicted in Hong Kong of taking a bribe.
Peter Luk was convicted by the district court in Hong Kong on August 5 of offenses under the Prevention of Bribery Ordinance and the Crime Ordinance.
Hong Kong’s Independent Commission Against Corruption said a year ago that Luk had been charged with “offering and accepting an advantage’’ consisting of 1.5 million shares in a Hong Kong-listed company, China Mining Resources Group, in 2008.
The market value of the shares was $HK330,000 ($42,500).
Brockman’s flagship asset is the Marillana iron ore project in Western Australia’s Pilbara.
After Luk was charged with corruption in Hong Kong, Brockman said he denied the charges and would fight them and that he would continue his role as chief executive.
In early 2012, Hong Kong-based Wah Nam International completed its takeover Brockman.
After Luk resigned last week, Brockman said in a statement to the Hong Kong and Australia stock exchanges that its board doesn’t expect his conviction and resignation “to have a material adverse impact on the group’s operations and financial conditions.”
Richard L. Cassin is the publisher and editor of the FCPA Blog. He can be contacted here.