In December 2022, Swiss-based mining and commodities giant Glencore agreed to pay the Democratic Republic of Congo $180 million (about £147 million) to settle allegations of corruption linked to its operations in the country between 2007 and 2018.
What the settlement covers
Glencore said the agreement with the Congolese government covers all present and future claims arising from alleged acts of corruption by the Glencore group in the DRC during that period. The company holds major interests in the country, including a controlling stake in the Kamoto Copper Company (KCC) and the Mutanda copper-cobalt mine, both important sources of cobalt used in electric vehicle batteries.
Glencore’s chairman, Kalidas Madhavpeddi, said the company was pleased to have reached a resolution addressing the consequences of its past conduct and described Glencore as a long-term investor in the DRC.
A year of corruption penalties
The DRC deal followed a series of investigations by authorities in the United States, the United Kingdom and Brazil. Earlier in 2022, Glencore pleaded guilty to bribery and market manipulation charges and agreed to pay more than $1.5 billion in penalties.
According to the US Department of Justice, Glencore admitted conspiring to make payments of around $27.5 million to third parties, intending that part of the money would be used as bribes to secure improper business advantages in the DRC. The company also admitted paying bribes to officials in several other countries, including Brazil, Venezuela, Equatorial Guinea, Ivory Coast, Nigeria and South Sudan.
In the UK, a court ordered Glencore’s oil trading arm to pay more than £280 million over bribery connected to its West Africa trading desk in London. The judge, Mr Justice Fraser, said bribery had been an accepted part of how that desk did business and described it as a corrosive crime that spreads like a disease through people and organisations.
Glencore’s response
Glencore acknowledged that “unacceptable practices” had taken place in the past but insisted that it had since changed, strengthening its compliance and ethics programmes. Despite the penalties, the company reported very strong profits in 2022, helped by high commodity prices.
About Glencore
Glencore is one of the world’s largest commodity trading and mining companies, employing around 135,000 people across more than 35 countries. Its mining operations produce key materials such as copper, cobalt, zinc and coal.
