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The
world's most valuable iron ore deposits are thought to be beneath the Simandou
mountains in Guinea. RioTinto
|
Billionaire businessman
Beny Steinmetz has been detained by Israeli police for questioning in relation
to allegations of bribery and corruption in Africa, Reuters news agency
reports.
BBC
News report continues:
The
company Mr Steinmetz founded, BSG Resources, struck a famous and controversial
deal for iron ore mining rights in Guinea in 2008, buying them from the ailing
ex-President Lansana Conte for US$160m shortly before his death.
Two
years later, 51% of the rights were sold on to a Brazilian mining company for US$2.5bn.
Israeli
police did not name the man who had been arrested, describing him only as a
prominent businessman, Reuters adds.
Both
Mr Steinmetz and BSGR strenuously deny allegations of bribery.
A
police statement said that he, along with other Israelis living abroad, was
suspected of paying tens of millions of dollars to senior public officials in
Guinea to advance their businesses.
In
an emailed statement to Bloomberg news agency, the company said: “It is BSGR’s
strong belief that these allegations of bribery by the government of Guinea are
not only baseless, but are a systematic attempt by the government of Guinea to
cover up the endemic corruption which has blighted this country for a number of
years.”
BSGR
said the investigations were initiated by the government of Guinea with
international police organizations in the US, the UK and Switzerland.
Buried Secrets: Read the New Yorker's in-depth investigation into the Guinea iron oredeal.
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