Glencore awaits court verdict after paying millions for ‘favourable treatment’

This week, the United Kingdom branch of Glencore will hear its sentencing after it was found to have paid numerous bribes across five countries in Africa as well as the US, Brazil and Britain.

Glencore is said to have paid $1.5 billion in bribes in the US, Brazil and Britain.

The African countries included Cameroon, South Sudan, Equatorial Guinea, Ivory Coast and Nigeria.

It is alleged to have paid officials in Ivory Coast and Nigeria a total of $26.9 million. Glencore was also said to have paid $1 million to agents in Equatorial Guinea and South Sudan to secure valuable oil contracts.

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No figures were disclosed for Cameroon, but payments were made via an old trader on the West Africa desk to Cameroon’s national oil and gas company officials to ensure that received favourable treatment for the sale of crude oil.

Guilty

In June this year, the mining giant pleaded guilty to seven counts of bribery charges.

According to a report from Reuters, it was alleged that Glencore’s mining agents used private jets to transport the cash which they were using to pay these bribes.

Prosecutor Alexandra Healy said that the approval and offering of bribes was an acceptable way of doing business for the company.

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Meanwhile, in a statement, the company said that it unreservedly regrets the harm caused by these offences and recognises the harm caused, both at national and public levels in the African states concerned, as well as the damage caused to others.

Anti-bribery policy

Despite its recent actions, on its website, Glencore states quite firmly that is it does not ‘engage in corruption and never pays bribes regardless of who [they] are dealing with or what the local custom or practice is’.

Regarding facilitation payments, the company’s anti-bribery policy state: “In certain jurisdictions, public officials may request small payments, known as facilitation payments to expedite or to secure the performance of a routine governmental action such as issuing permits, licenses, or other official documents; processing government papers such as visas; providing customs clearances; providing police protection; providing utility services; or handling cargo.

“Facilitation payments are a form of bribery. We never pay, or authorise the payment of, facilitation payments. If we are asked to make a facilitation payment, we must not pay and we must inform compliance immediately.”