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Serb Police Arrest Harsco Metals Official Over Alleged Fraud

Serbian police arrested the local manager of Harsco Metals and 12 others on charges of illegally selling steel scrap in Romania and Albania and causing 5.7 million euros ($7.4 million) of damages to Serbia’s sole steel plant.

Instead of processing 200,000 tons of scrap as a contractor for Zelezara Smederevo d.o.o., the accused allegedly sold the material abroad and returned “worthless tailing” to the Smederevo-based steelworks, the government said on its website today.

A secretary at Harsco Metals said she couldn’t comment on the charges when contacted by Bloomberg News. None of the accused were immediately available, she said.

The move, involving forged documents, took place after the government took the unprofitable steel plant back from U.S. Steel Corp. for $1 more than a year ago.

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