SWISS federal prosecutors announced on Monday that Glencore’s international unit has been found ‘criminally liable’ and ordered to pay over $150 million in fines and compensation after concluding a probe into bribery related to the Congo mining industry over a decade ago.
The Swiss attorney general’s office determined that Glencore International AG failed to take sufficient measures to prevent the bribery of a Congolese public official by a business partner during its 2011 purchase of minority stakes in two companies from Congo’s state mining company.
Although Glencore did not admit to the findings, the company stated it would not appeal the decision. The attorney general’s office acknowledged that no Glencore employees were found to have known about the bribery conducted by the business partner, nor did Glencore ‘benefit financially’ from the partner’s actions.
Glencore International has been fined 2 million Swiss francs (about $2.4 million) and ordered to pay a $150 million ‘compensation claim’ related to the estimated benefits gained by the partner.
Glencore and other major commodities firms frequently face scrutiny and criticism from non-governmental organisations and authorities for their business practices in developing countries rich in natural resources like oil, diamonds, and minerals.
This latest ruling follows a 2022 agreement where Glencore agreed to pay $180 million to Congo’s government over bribery allegations spanning from 2007 to 2018. Chairman Kalidas Madhavpeddi emphasised that Glencore has ‘invested heavily’ in enhancing its ethics and compliance programme. He noted that two independent compliance monitors, appointed for a three-year term as part of a resolution with the US Justice Department, began their work in mid-2022.
As Glencore faces continued legal and ethical challenges, the company’s response to these issues will be closely watched by the international community.
