Glencore to Settle Congo Bribery Case with $152 Million Fine

glencore.com

Swiss-based commodities giant Glencore has agreed to pay around $152 million to settle a criminal investigation involving bribery related to its activities in the Democratic Republic of Congo (DRC). The case stems from a 2011 incident where a Congolese public official was allegedly bribed by a business partner of Glencore in connection with acquiring mining stakes.

The Swiss Attorney General’s office determined that Glencore failed to establish sufficient organizational measures to prevent bribery. While Glencore did not admit to these findings, the company has chosen not to challenge the summary penalty order issued by the Swiss authorities.

The settlement includes a CHF 2 million ($2.3 million) fine and an additional $150 million in compensation, representing the estimated financial gain obtained by Glencore’s business partner from the transaction. Swiss investigators noted that there was no evidence showing that Glencore employees were aware of the bribery scheme or that the company directly benefited from it.

This bribery case is connected to the business partner’s purchase of minority stakes in two mining companies in the DRC from the state-owned mining entity, Gecamines. According to Swiss authorities, these shares were acquired at a price “below their true value,” raising questions about the transaction’s fairness.

A related investigation by Dutch prosecutors was dismissed following the resolution of the Swiss inquiry. Glencore’s operations in the DRC include its Mutanda Mining subsidiary and the Kamoto Copper Company, a joint venture with Gecamines. Recently, the company has faced operational difficulties in the region, with copper production down by 9% and cobalt output dropping by 27% in the first half of 2024 compared to the same period last year.

This settlement adds to Glencore’s ongoing legal and regulatory issues as the company continues to navigate the complex and frequently contentious landscape of global mining and trading.

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