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Glencore agrees $180m settlement with DR Congo over bribery allegations

Settlements: Glencore has already agreed to pay fines totaling £1.2billion this year in relation to bribery offenses and fuel oil price manipulation

Glencore agrees to $180m settlement with DR Congo over corruption allegations as FTSE 100 miner pays fines of over $1bn in 2022

  • Glencore has already agreed to pay £1.2bn in fines this year to settle the claims
  • Over the summer, the commodities trader was fined £900m by the US DoJ
  • These scandals have overshadowed the exceptional results of the Swiss-based company

Glencore has agreed to pay $180 million to the Democratic Republic of Congo to settle all allegations of alleged corruption in the country over an 11-year period.

He has already agreed to pay fines totaling £1.2bn this year in connection with bribery offenses in several states in Africa and South America, and the manipulation of fuel oil prices in the US.

Swiss mining giant FTSE 100 said the latest deal covers all activities that have been investigated by the DRC’s National Financial Intelligence Unit and Ministry of Justice, as well as the Ministry of United States Justice.

Settlements: Glencore has already agreed to pay fines totaling £1.2billion this year in relation to bribery offenses and fuel oil price manipulation

Settlements: Glencore has already agreed to pay fines totaling £1.2billion this year in relation to bribery offenses and fuel oil price manipulation

Over the summer, the commodities trader was fined £900million by the US DoJ after it was caught bribing officials in seven countries and manipulating fuel prices in two commercial ports.

An investigation by the department revealed that Glencore had handed over approximately $27.5 million to third parties in the DRC, some of which was intended to be used as bribes to officials “to obtain improper business advantages”. .

Glencore’s assets in Central African territory include mining operations in Mutanda and Katanga, both of which produce copper and cobalt.

Cobalt is a common element used for batteries in electronic devices such as cell phones and laptops, while copper is considered a vital metal for the “energy transition”, given its importance in technologies such as wind turbines and solar panels.

Kalidas Madhavpeddi, Chairman of the company, said: “Glencore is a long-standing investor in the DRC and is pleased to have entered into this agreement to deal with the consequences of its past conduct.

“Glencore has actively promoted its ethics and compliance program in the DRC over the past few years and looks forward to continuing to work with the DRC authorities and other stakeholders to facilitate good governance and ethical business practices in the country. .

Today’s fine follows a Southwark Crown Court judgment last month which ordered the group to pay £281million – the heaviest sentence ever imposed on a company by a UK court – following an investigation by the Serious Fraud Office (SFO).

This investigation revealed that Glencore’s London-based oil trading office paid more than £24 million in bribes to gain preferential access to shipments to Cameroon, Nigeria, Equatorial Guinea, Ivory Coast and South Sudan.

Some payments were found to have been transported in cash via a private jet, while others were disguised as ‘service fees’ or ‘signing bonuses’ in financial reports.

The scandals eclipsed the record results of the London-listed multinational, whose adjusted profit reached $18.9 billion for the first half of this fiscal year thanks to soaring commodity prices.

Rising thermal coal prices particularly boosted the group’s performance due to shortages created by Covid-related lockdowns and Russia’s invasion of Ukraine.

Shares of Glencore rose 2.1% to 569.8p by mid-morning on Monday, meaning their value has more than halved in the past 12 months.

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