First Rio Tinto and now Rolls-Royce, the woes of senior executive Alan Davies are continuing to mount over the metals and mining group’s Guinea iron ore bribery scandal.
Mr Davies, who had been at Rio for two decades, has now also stood down from his role as non-executive director at Rolls-Royce.
The motoring and engineering firm has announced Mr Davies’ resignation to the London market, although has not explained why he has decided to stand down.
Rolls-Royce chairman Ian Davis said simply: “I am hugely grateful to Alan for the contribution he has made to the board. His expertise and perspectives will be greatly missed.”
Mr Davies, who is London-based, first joined the Rolls-Royce board last year. He was a member of its nominations and governance committee, the audit committee and the safety and ethics committee.
He would have been receiving around £70,000 in annual fees for his position on the board. Meanwhile his salary and bonuses as the chief executive of Rio’s energy and minerals division, last year would have been in the region of $3.5 million.
Both Mr Davies and the company’s legal group executive Debra Valentine were sacked in November this year after Rio revealed it had contacted global corruption authorities in Britain, America and Australia about its payment of $10.5 million five years ago to the French investment banker Francois de Combret.
That sum was paid for Mr de Combrets assistance in helping Rio to secure the ownership of its Simandou iron ore riches from the Guinean government when the deal had been under threat. That money came after a previous settlement worth $700m with the Guinean authorities.
Following an emergency board meeting held at Rio’s London headquarters, which was set up specifically to discuss the 2011 payments, the contracts of both Mr Davies and Ms Valentine were ended.
Rio said that both executives had failed to meet its standards of global code of conduct. The personal cost to the pair will be more than $10 million.
Mr Davies, however, has strenuously denied any wrongdoing and has revealed that he will be taking legal action against Rio.
Rio has so far kept schtum about what information came to light to lead to the action taken against its two executives.
Authorities in Guinea are now demanding answers over the affair, given that it was “the country caught in the middle of the boardroom drama”.