Glencore to pay $152 million as Swiss bribery investigation concludes
According to Bloomberg, Glencore Plc will pay $152 million after Swiss authorities wrapped up an investigation into the commodities trader and miner, marking the end of more than six years of legal probes across Europe and the Americas, reports Kazinform News Agency correspondent.
Swiss prosecutors found that Glencore failed to take reasonable measures to prevent the bribery of a Congolese public official by a business partner in 2011, the office of the attorney general said in a statement on Monday.
Glencore said it does not admit the findings, but has agreed not to appeal the summary penalty order in the interests of resolving the matter. A parallel investigation by the Dutch Prosecution Service has also been concluded and dismissed.
“The OAG stated in the summary penalty order that it did not identify that any Glencore employees had any knowledge of the bribery by the business partner, nor did Glencore benefit financially from the conduct of the business partner,” Glencore said in its statement.
With the latest penalties, Glencore will have paid at least $1.7 billion to resolve various investigations into bribery and corruption around the world. The company in 2022 pleaded guilty to corruption and market manipulation cases in the US and UK, admitting that it had paid bribes to win business in eight countries from Brazil to South Sudan.
Under former CEO Ivan Glasenberg, Glencore grew into a major commodity trader and miner by operating in risky countries like the Democratic Republic of Congo, Chad, Russia, and Kazakhstan. Investigations into Glencore are part of broader probes into misconduct by major commodity traders, including Trafigura Group and Gunvor Group Ltd., who admitted to paying bribes.
Chairman Kalidas Madhavpeddi expressed satisfaction with the resolution of these probes, which addressed incidents from over 13 years ago.
Glencore’s “failure to take all necessary and reasonable organizational measures” warranted a 2 million Swiss franc ($2.4 million) fine and the further $150 million in compensation, the Swiss Attorney-General’s Office said in a statement on Monday.
Despite typically lighter penalties in Switzerland compared to the US, the Swiss AG acknowledged Glencore’s cooperation and noted the potential for harsher sanctions. While Glencore didn't admit to the findings, it was deemed criminally liable by Swiss authorities.
Earlier Kazinform News Agency that Glencore Plc is considering selling its 70% stake in Kazakhstan’s Kazzinc to perspective buyers in China.
