Energy giant Glencore has been ordered by the Swiss authorities to pay a fine and compensation totalling around £119m, resolving a probe into the bribery of a Congolese public official by its business partner in 2011.
The office of the attorney general of Switzerland revealed today that it has closed its criminal investigation against Glencore International after four years.
The Swiss AG said Glencore “failed to take all necessary and reasonable organisational measures with regard to the bribery of foreign public officials by a business partner in connection with the latter’s acquisition of minority stakes in two mining companies in the Democratic Republic of Congo in 2011”.
Glencore has been held “criminally liable for corporate liability” for failing to take all necessary reasonable and organisational measures to prevent the bribery of a Congolese public official by its business partner.
The authorities imposed a financial summary penalty order on the grounds of failures of corporate responsibility at Glencore.
The energy giant had been ordered to pay a fine of CHF 2m (£1.8m) and a compensation claim amounting to $150m (£117.6m), totalling around £119.4m.
The Swiss AG noted that Glencore’s cooperation with the prosecuting authorities since the opening of the criminal investigation in June 2020 has been taken into account in the reduction of the penalty.
The Swiss authority noted that the Dutch public prosecution service (DPPO) was conducting a criminal procedure against Glencore on suspicion of bribery in connection with the purchase of mining rights in DRC.
The DPPO also issued a statement confirming the summary penalty order in Switzerland and revealing that the Dutch prosecutor has dismissed the case against Glencore.
The statement noted that “since Glencore International is a Swiss company, the conclusion of the criminal investigation in Switzerland is preferred, according to both countries.” However, the investigation into the co-defendants continues.
Commenting on today’s news, Kalidas Madhavpeddi, chairman of Glencore said: “Glencore is pleased to have resolved these investigations relating to past matters that occurred over 13 years ago. This resolves the last of the previously disclosed government investigations into historical misconduct.”
He noted that “the board and management of Glencore are clear – acting in accordance with our values, our code of conduct, and the law is non-negotiable.”
Back in 2022, Glencore agreed to pay $180m (£147m) to the Democratic Republic of Congo to settle “all present and future” lawsuits arising from the large-scale international bribery scandal currently facing the firm.
Elsewhere, back in the UK, the Serious Fraud Office (SFO) charged five former Glencore employees last week, over allegations of conspiring to make corrupt payments in order to benefit mining giant Glencore’s oil operations in West Africa