ASIC takes former Rio boss to court

The Australian Securities and Investments Commission has begun court action against former Rio Tinto executives, alleging misleading and deceptive conduct.

Australia's corporate watchdog has begun court action against former Rio Tinto CEO Tom Albanese and his then-CFO over alleged deception in relation to a disastrous $4 billion African coal investment.

The Australian Securities and Investments Commission alleges Mr Albanese and former Rio Tinto chief financial officer Guy Elliott signed off on a 2011 report that misrepresented the value of the Mozambique coal mine, which was eventually sold for just $50 million after heavy writedowns.

Last year the United States stock market regulator laid fraud charges against Mr Albanese and Mr Elliott over the same investment.