Glencore to Pay DRC $180M to Settle Corruption Claims
Swiss commodity trading and mining company Glencore agreed to pay the Democratic Republic of the Congo $180 million to settle "all present and future claims" of corruption running from 2007 to 2018, the company announced. The news comes after Glencore pleaded guilty in a New York district court to violating the Foreign Corrupt Practices Act in May (see 2205270044). In that case, Glencore International and Glencore agreed to pay over $1.1 billion to settle the investigations into bribery and commodity price manipulation.
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Also as part of its agreement with DOJ, Glencore agreed to implement an ethics compliance program. Pursuant to its deal with the DRC, Glencore International will pay the $180 million penalty on behalf of its associated companies in the Congo, and implement the ethics program in the DRC.
According to the plea agreement with DOJ, Glencore engaged in a conspiracy for over a decade to pay in excess of $100 million to third-party intermediaries, intending for a large portion of the payments to be used for bribes in several countries. The targeted countries of the bribes include Nigeria, Cameroon, Ivory Coast, Equatorial Guinea, Brazil, Venezuela and the DRC.
"Glencore is a long-standing investor in the DRC and is pleased to have reached this Agreement to address the consequences of its past conduct," said Kalidas Madhavpeddi, chairman of Glencore. "Glencore has actively promoted its Ethics and Compliance Programme in the DRC in recent 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."