GLENCORE INTERNATIONAL PLC (BRAZIL, VENEZUELA AND AFRICAN COUNTRIES)

Industry

Extractive Industries/Mining/Oil & Gas

Corporate Headquarters

Baar, Zug, Switzerland

Summary of Allegations:

Nationality of Foreign Officials: Brazil, Cameroon, Dem. Rep. of the Congo, Equatorial Guinea, Ivory Coast, Nigeria, South Sudan, Venezuela

Summary of Allegations:

Glencore and its subsidiaries allegedly participated in a decade-long scheme to make and conceal corrupt payments and bribes through intermediaries for the benefit of foreign officials across multiple countries.

Between 2007 and 2018, Glencore and its subsidiaries paid more than $100 million to third-party intermediaries, while intending for a significant portion of these payments to be used to pay bribes to officials in Nigeria, Cameroon, Ivory Coast, Equatorial Guinea, Brazil, Venezuela and the Democratic Republic of the Congo.

The U.K. SFO indicated that Glencore Energy UK Ltd allegedly paid over $28 million for preferential access to oil in Africa.

 

Approximate Alleged Payments to Foreign Officials:

Business Advantage Allegedly Obtained:

Enforcement Results

Agencies: Brazil: Brazilian Federal Prosecutors

Results:

Year Resolved:

Compliance Monitor:

Ongoing: No

Details:

On 11 February 2019, the Switzerland Office of Attorney General confirms it is providing legal assistance to Brazilian prosecutors regarding a probe into Vitol, Glencore and Trafigura for potential illegal payments to Petrobras executives.

On 24 May 2022, it was disclosed that Glencore had agreed to pay $39.6 million under a resolution with the Brazilian Federal Prosecutor's Office.

Agencies: United Kingdom: Serious Fraud Office

Results:

Year Resolved:

Compliance Monitor:

Ongoing: Yes

Details:

5 December 2019 - the Serious Fraud Office announced that a bribery investigation into the Glencore group of companies was ongoing. No further information is released.

On 24 May 2022, the Serious Fraud Office disclosed that it has charged Glencore Energy (UK) Ltd with seven counts of bribery in connection with its oil operations in Cameroon, Equatorial Guinea, Ivory Coast, Nigeria, and South Sudan. The London court is set to sentence Glencore on 21 June 2022.

On 21 June 2022, the SFO disclosed that Glencore Energy (UK) Ltd had been convicted of bribery. The company admitted to multiple counts of paying bribes to secure access to oil and generate illicit profit. Sentencing will take place on 2 or 3 November.

 

Agencies: United States: Commodity Futures Trading Commission , United States: Department of Justice

Results: Criminal Fine, Deferred Prosecution Agreement, Disgorgement

Year Resolved:

Compliance Monitor:

Ongoing: No

Details:

On 7 February 2019, according to Reuters, the U.S. DOJ is speaking with Houston-based oil trader Rodrigo Garcia Berkowitz charged in Brazil for his role in a bribery scheme involving Vitol, Glencore and Trafigura.

On 15 February 2022, Glencore announced that it had reserved approximately US $1.5 billion for probes into bribery and market manipulation in the U.S., U.K. and Brazil.

On 24 May 2022, Glencore disclosed that its subsidiaries Glencore International AG and Glencore Ltd. pleaded guilty to FCPA violations and agreed to pay $700 million to resolve the DOJ's foreign bribery investigation, with a $428 million criminal fine and $272 million for criminal forfeiture and disgorgement. Glencore has also agreed to retain an independent compliance monitor for three years. The DOJ has agreed to credit nearly $166 million in payments that Glencore makes to resolve parallel investigations by other domestic and foreign authorities.

Separately, Glencore Ltd. admitted to engaging in a multi-year scheme to manipulate fuel oil prices at two of the busiest commercial shipping ports in the U.S. As part of the plea agreement, Glencore Ltd. agreed to pay a criminal fine of over $341 million, pay forfeiture of over $144 million, and retain an independent compliance monitor for three years.

On the same day, the Commodity Futures Trading Commission (CFTC) announced a separate settlement with Glencore and its subsidiaries in connection with its FCPA and market manipulation investigation. Under the terms of the CFTC resolution, Glencore agreed to pay over $1.1 billion, which includes a civil monetary penalty of over $865 million, as well as disgorgement totaling over $320 million.

ENTITIES / INDIVIDUALS INVOLVED
  • Glencore International A.G.
  • Glencore Ltd