Glencore pleads guilty to corruption in the United States, Brazil and the United Kingdom

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New York (AFP) – The Swiss group Glencore announced, on Tuesday, that it had reached agreements with the United Kingdom, the United States and Brazil, admitting the commission of corruption in Africa and South America and the manipulation of oil markets.

The company dedicated to the exploitation and marketing of raw materials and foodstuffs, as well as the owner of copper and coal mines, expects to pay $1020 million to the United States and $40 million to Brazil, while the amount of fines it will have to take and the statement to be transferred to the United Kingdom has yet to be determined.

These agreements put an end to the complaints made by these countries, but there are still proceedings against them underway in Switzerland and the Netherlands, where the company is suspected of having taken the necessary measures to avoid cases of corruption.

“The timing and completion of these investigations remain uncertain,” the company said.

The group was identified in 2018 by the US Department of Justice as part of a widespread corruption investigation related to its activities in Nigeria, Venezuela and the Democratic Republic of the Congo (DRC). Other authorities filed more lawsuits.

Glencore has agreed to pay a fine of $700 million to the United States for fraud and bribery, mainly in Brazil, Cameroon, Nigeria and Venezuela, as well as for misrepresentation of classified information, mainly in Mexico. Fabrice Cofferini AFP

–external audit–

Glencore has agreed to pay a fine of $700 million to the United States for fraud and bribery, mainly in Brazil, Cameroon, Nigeria and Venezuela, as well as for misrepresentation of classified information, mainly in Mexico.

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The company also has to pay $486 million for manipulating the prices of various contracts negotiated in the oil markets.

In both cases the group pleaded guilty.

Part of the amount negotiated with Washington, which estimates that Glencore illegally enriched hundreds of millions of dollars, is to be transferred to other authorities.

The company also agreed to pay about $40 million to settle an investigation by Brazilian authorities into bribery cases, particularly with oil giant Petrobras.

Similarly, Glencore has pleaded guilty to seven counts of corruption in its oil activities in Cameroon, Equatorial Guinea, Ivory Coast, Nigeria and South Sudan, according to a statement from the CBI.

Bribes paid by Glencore employees as the company agreed to preferential access to oil totaled about $25 million, according to an SFO investigation.

The fine to be paid will be decided at a hearing on June 21.

The group said in February it had set aside $1.5 billion to resolve the ongoing investigation and said on Tuesday that including fines to be paid in the UK, that figure should not be much higher.

Glencore claimed that it overhauled its ethical and compliance practices, as well as firing some of the employees involved.

“We are aware of the shortcomings identified in these investigations and have cooperated with authorities,” Chief Executive Officer Gary Nagel said in the statement.

“This kind of behavior has no place at Glencore, the board of directors, the management team and I am aware of the culture we want and about our commitment to being a responsible and ethical operator wherever we operate,” added Nagle, who has been a member of the Glencore Board of Directors since last July.

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The agreement with the US authorities also provides for the appointment of an external auditor to verify for a period of three years that the group respects its commitments and obligations.

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