China steps up Stern Hu bribe case

CHINESE prosecutors last night stepped up their case against Stern Hu and three Rio Tinto colleagues by formally indicting them for “illegally accepting huge amounts of money” and obtaining commercial secrets at the expense of Chinese steel mills.

Last night’s official Xinhua news agency report, quoting the Shanghai prosecutor, adopts the toughest official language since the early weeks after the four were detained on July 5.

The timing and form of the announcement surprised some legal representatives of the accused as well as political observers.

None of the lawyers, Rio Tinto or the Australian government appear to have been told of the decision before they were informed of it by the The Age or read it on Chinese official media.

The case is likely to proceed within weeks to a court trial that is closed to the public.

The Xinhua statement last night may place Rio Tinto in an uncomfortable spotlight by accusing Mr Hu and his colleagues of “exploiting their positions to seek gain for others” – although the report did not detail who “others” refers to.

The language may imply the employees sought benefits for the company as well as themselves.

The Xinhua report cited the prosecutor as saying: ”The accused four … exploited their positions to seek gain for others, and numerous times either sought or illegally accepted huge amounts of money from a number of Chinese steel firms; and many times they used … improper means to obtain commercial secrets from Chinese steel firms, causing serious consequences for the firms.”

Xinhua also said: ”It is understood that the Shanghai Municipal First Intermediate People’s Court has accepted this case according to the law.”

The decision to indict Mr Hu, an Australian, and Chinese citizens Ge Minqiang, Wang Yong and Liu Caikui quashes hopes that the case might be resolved in the employees’ favour in the context of improving China-Australia relations and Rio Tinto’s appointment of a new and experienced China president.

Zhang Peihong, lawyer for iron ore salesman Wang Yong, said he had no idea the announcement was coming and was ”very surprised” to see it disseminated via the news media.

”I was very surprised, because the lawyers were told to visit their clients this week and some had met with the suspects and the news suddenly came out at 6.30pm on Xinhua.”

Mr Zhang said he had also expected prosecutors to at least use another two weeks to obtain evidence and possibly gain an extension, as permitted by law.

”I expect the trial to start soon after the spring festival,” he said, referring to the week long holiday that begins this Sunday.

Observers say the decision is likely to have been made at the highest level of Chinese politics.

Some had expected President Hu Jintao’s visit last month to Shanghai – the territory of his political rivals and his first visit in two years – would lead to the case being resolved in Mr Hu’s favour.

“The decision on how to put an end to this incident was made at the very last minute with intensified internal debate,” said one close political observer last night.

G7 pledges to cancel Haiti debt

The world’s leading industrialised nations have pledged to write off the debts that Haiti owes them, following a devastating earthquake last month.

Canada’s finance minister announced at a summit in Iqaluit, northern Canada, that Group of Seven countries planned to cancel Haiti’s bilateral debts.

Jim Flaherty said he would encourage international lenders to do the same.

Bi- and multilateral lenders including international bodies cancelled some $1.2bn (£800m) of Haiti’s debt in 2009.

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Free Business Ideas

A reader asks:

Why do you give away your business ideas for free? Is it because free business ideas are bad business ideas?

I give away “free” business ideas because I have, read about or come across more business ideas than I could every possibly execute myself. Besides business ideas in and of themselves are essentially worthless, it’s difficult to protect business ideas and pretty hard to sell business ideas (for much more than a few pounds/dollars). The value created by a business comes from the execution of the business idea, not the business idea itself.

So is a free business idea a bad business idea? Maybe

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Outlook 2010

Outlook 2010: Is the recovery for real? The economy is growing again, but there’s reason to worry the better times won’t last.

Outlook 2010: When will the job market rebound? While employment is rising, in a few key sectors the losses look permanent.

Outlook 2010: Is this a real estate boom or a bubble? Housing prices have been defying gravity, but 2010 may bring back some sanity.

Outlook 2010: What’s next for the loonie? The dollar looks likely to remain strong for a while now. But does it really matter?

Outlook 2010: Are the deficits here to stay? As Ottawa trims to tackle the fiscal hole, what America does might matter more.

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The persuaders

WHEN it comes to buttonholing politicians, Westpac has staked out the nation’s best location. The bank’s tiny branch inside the walled-off areas of Parliament House dutifully looks after the savings accounts of some of the nation’s most senior politicians and bureaucrats.

But for years the branch has also been a de facto base for Westpac’s government relations staff, who have plotted high-level strategies from a cramped office behind the tellers.

The Westpac branch, no bigger than a country post office, sits right beside Parliament’s only real meeting spot — Aussie’s cafe.

During the global financial crisis and recent bouts of interest rate rises, the tab at Aussie’s was running hot as Westpac frantically pushed its views to politicians from all sides and their staffers.

On the surface, the Westpac branch is one of the more obvious symbols of where business and politics meet. B

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