The Swiss group has to pay a fine of millions in Great Britain.
(Photo: Reuters)
Zurich The Swiss commodities group Glencore has to pay a fine of 280 million pounds, the equivalent of around 320 million euros, for extensive bribery payments in Africa. A court in London ruled on Thursday. Glencore had already pleaded guilty to seven counts of corruption during the course of the trial. Years of investigations by the British law enforcement agency Serious Fraud Office (SFO) preceded the verdict.
The investigators had disclosed an extensive bribe system in Glencore’s London branch. Between 2011 and 2016, Glencore dealers reportedly paid a total of $28 million to officials in five African countries, including Nigeria and Cameroon. The investigation provided rare insights into backroom deals in African countries.
In 2011, for example, a Glencore delegation traveled by private jet to the capital, Juba, shortly after South Sudan gained independence. On board: $800,000 in cash, ostensibly to set up a local office. However, part of it was used for bribery payments, as the SFO was able to prove.
“Cash Desk” at Glencore Headquarters
A few months later, an assistant to the then South Sudanese President was received at Glencore’s headquarters in Baar, Switzerland. There he accepted $275,000 in cash. Shortly thereafter, Glencore was awarded the contract to market oil from South Sudan.
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Glencore had set up a cash desk at the company’s headquarters in Baar, where traders could obtain cash to initiate business. Judge Peter Fraser, delivering the verdict on Thursday, said of the seven counts of corruption Glencore had acknowledged: “These were not isolated acts of bribery that took place on a single occasion.” The investigation had shown: “Bribery was clearly part the culture.”
Glencore chief supervisor Kalidas Madhavpeddi condemned the bribery system: “The behavior was inexcusable and has no place at Glencore.” The group has set up an ethics and compliance program that meets the highest international standards and in which “openness and integrity come first “.
Glencore has set aside $1.5 billion for legacy assets
In addition to the UK, Glencore has also reached an agreement with authorities in the US and Brazil to complete investigations into corruption and market manipulation. Overall, Glencore has set aside $1.5 billion for legacy assets.
Financially, the company can cope with the billions in fines. In the first half of 2022 alone, Glencore generated pre-tax profit (EBIT) of $15.4 billion. On the other hand, eleven former Glencore traders involved in the corruption scandal are uncomfortable. They could also face personal charges, according to the SFO.
More: Glencore accepts billion-euro settlement over bribery allegations.
