HomeBusiness

Glencore ordered to pay millions over Africa oil bribes

A UK subsidiary of mining giant Glencore has been ordered to pay more than £275m for bribing officials in African countries to get access to oil.

Why does African cuisine not get more global recognition?
Stuart Littles: Pint-sized sports cars thrill visitors at Switzerland concourse
Mali media guide

A UK subsidiary of mining giant Glencore has been ordered to pay more than £275m for bribing officials in African countries to get access to oil.

The company paid $26m (£23m) through agents and employees to officials of crude oil firms in Nigeria, Cameroon and Ivory Coast between 2011 and 2016.

Prosecutors said Glencore Energy UK employees and agents used private jets to transfer cash to pay the bribes.

Glencore Energy UK pleaded guilty to seven corruption offences in June.

It was ordered to pay a fine of £182.9m by Judge Peter Fraser at Southwark Crown Court, who also approved £93.5m to be confiscated from the company.

Along with five charges of bribery, the subsidiary admitted charges of failing to prevent agents from using bribes to secure oil contracts in Equatorial Guinea and South Sudan.

Judge Fraser said the offences Glencore had pleaded guilty to represented “corporate corruption on a widespread scale, deploying very substantial sums of money in bribes”.

“The corruption is of extended duration, and took place across five separate countries in West Africa, but had its origins in the West Africa oil trading desk of the defendant in London. It was endemic amongst traders on that particular desk,” he added.

Glencore, founded in 1974, is one of the largest multinational commodity trading and mining companies in the world.

Its subsidiaries operate in more than 35 countries, but Glencore’s London office primarily dealt in oil, with one of its crude oil divisions responsible for West Africa.

On Wednesday, the Serious Fraud Office told Southwark Crown Court that Glencore Energy UK paid – or failed to prevent the payment of – millions of dollars in bribes to officials in five African countries.

The bribery charges stated that the firm’s aim was for officials to “perform their functions improperly, or reward them for so doing, by unduly favouring Glencore Energy UK in the allocation of crude oil cargoes, the dates crude oil would be lifted and the grades of crude oil allocated”.

In 2018, the US Department of Justice (DoJ) launched an investigation into Glencore’s compliance with US money-laundering and corruption laws dating back as far as 2007. It concerned the mining giant’s operations in Nigeria, the Democratic Republic of Congo and Venezuela.

The UK’s SFO followed suit in 2019, investigating one of Glencore’s UK subsidiaries over “suspicions of bribery” in Africa.

The Serious Fraud Office previously said its investigation exposed “profit-driven bribery and corruption”.

Clare Montgomery, representing Glencore, said: “The company unreservedly regrets the harm caused by these offences and recognises the harm caused, both at national and public levels in the African states concerned, as well as the damage caused to others.”

Judge Fraser said in his sentencing remarks that Glencore “engaged in corporate reform and today appears to be a very different corporation than it was at the time of these offences”.

In May, the firm agreed to a $1.1bn (£900m) settlement in the US over a scheme to bribe officials in seven countries during the course of a decade.

It concerned the mining giant’s operations in Nigeria, the Democratic Republic of Congo and Venezuela.

COMMENTS

WORDPRESS: 13
  • comment-avatar

    Thanks for the sensible critique. Me & my neighbor were just preparing to do a little research about this. We got a grab a book from our area library but I think I learned more clear from this post. I’m very glad to see such fantastic information being shared freely out there.

  • comment-avatar

    Im not positive the place you’re getting your information, however good topic. I needs to spend some time finding out more or figuring out more. Thanks for magnificent info I was searching for this information for my mission.

  • comment-avatar

    I am continually invstigating online for tips that can assist me. Thank you!

  • comment-avatar

    Nice post. I used to be checking continuously this blog and I am impressed! Extremely useful information particularly the last section 🙂 I handle such info much. I was looking for this certain information for a long time. Thanks and best of luck.

  • comment-avatar

    I like meeting utile information , this post has got me even more info! .

  • comment-avatar

    I believe you have observed some very interesting details, thanks for the post.

  • comment-avatar

    Really Appreciate this article, is there any way I can receive an alert email when you publish a fresh update?

  • comment-avatar

    Nice post. I was checking continuously this blog and I’m impressed! Very useful information particularly the last part 🙂 I care for such info much. I was seeking this certain information for a long time. Thank you and good luck.

  • comment-avatar

    What i don’t understood is actually how you are now not actually a lot more well-preferred than you might be now. You’re so intelligent. You realize thus considerably in relation to this matter, made me in my opinion imagine it from a lot of varied angles. Its like women and men are not fascinated except it is something to do with Girl gaga! Your own stuffs outstanding. All the time care for it up!

  • comment-avatar

    I keep listening to the news bulletin speak about receiving free online grant applications so I have been looking around for the best site to get one. Could you tell me please, where could i acquire some?

  • comment-avatar

    What i don’t realize is in reality how you’re now not actually much more smartly-favored than you may be now. You’re very intelligent. You know therefore considerably in terms of this matter, made me in my opinion consider it from numerous numerous angles. Its like men and women are not interested unless it¦s one thing to accomplish with Woman gaga! Your individual stuffs great. All the time deal with it up!

  • comment-avatar

    Great post and right to the point. I am not sure if this is really the best place to ask but do you guys have any ideea where to get some professional writers? Thanks in advance 🙂

  • comment-avatar
DISQUS: 0