Mining giant Glencore is to pay more than a billon dollars after bribery investigations, with the firm’s chairman admitting “unacceptable practices” had taken place.
The company announced it had reached agreements with authorities in the US, UK and Brazil who were investigating claims of bribery and market manipulation.
The announcement of penalties to be paid came after Glencore Energy UK indicated in a London court on Tuesday that it will plead guilty to bribery charges brought by the Serious Fraud Office.
Read our statement regarding today’s resolutions with US, UK and Brazilian authorities. We acknowledge the past misconduct identified in these investigations and have taken significant steps to enhance our Ethics & Compliance Programme. More here: https://t.co/PTQKuJuve1
— Glencore (@Glencore) May 24, 2022
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In an update on Tuesday evening, Glencore said it will pay penalties of $700,706,965 (about €652 million) to resolve bribery investigations and $485,638,885 to resolve market manipulation investigations by the Department of Justice (DOJ) in the US and the Commodity Futures Trading Commission (CFTC).
The firm said up to $165,930,959 will be credited against parallel matters, resulting in the net amount payable to the US authorities expected to be $1,020,414,891.
The company said it has also agreed to pay $39,598,367 under a resolution signed with the Brazilian Federal Prosecutor’s Office (MPF) in connection with its bribery investigation.
The London-listed miner had previously set aside $1.5 billion to cover the investigations it faces in the US, the UK and Brazil.
Glencore chairman Kalidas Madhavpeddi said: “Glencore today is not the company it was when the unacceptable practices behind this misconduct occurred.
“The board and the management team are committed to operating a company that creates value for all stakeholders by operating transparently under a well-defined set of values, with openness and integrity at the forefront.
“We want the Glencore of today to be an employer of choice, attracting and retaining the best talent and competing across its sectors not only in terms of the unique value proposition that Glencore has to offer, but also in its commitment to act ethically and responsibly across all aspects of its business.”
