Mkhwebane’s office is considering US evidence regarding Glencore’s ‘corrupt’ practices

Public Protector Busisiwe Mkhwebane says her office is considering looking into South Africa’s ties with mining giant Glencore, after the multinational company pleaded guilty and agreed to pay $1.2 billion in fines and penalties for corrupt practices in dealing with foreign governments.

Glencore fined $1.2 billion

United Democratic Movement (UDM) leader Bantu Holomisa wrote to Mkhwebane on Tuesday, asking her to consider approaching authorities in the United States for evidence against Glencore.

This after two of Glencore’s subsidiaries pleaded guilty on 24 May to multiple charges of market manipulation and bribery, including corruption in connection with the company’s oil operations in Africa and South America.

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Although South Africa was not specifically cited in the US indictment against Glencore for violating the US Foreign Corrupt Practices Act and manipulating commodity prices, Holomisa said the likelihood of these practices happening in SA was quite high.

Former Eskom executives Brian Molefe and Matshela Koko previously made allegations of wrongdoing against Glencore while testifying at the state capture commission, chaired by Chief Justice Raymond Zondo.

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The pair alleged that Glencore made President Cyril Ramaphosa the chairperson of its then partly owned Optimum Coal Mine in 2012, due to his political influence in a bid to assist the company in its dealings with Eskom.

“The Public Protector, as the originator of the state capture report, has great insight into the entire matter of state capture and could take up the issue with the US government with the assistance of the Zondo Commission’s lead investigators, the Special Investigating Unit and possibly the National Prosecuting Authority.

“There is, furthermore, a deeper principle that should be considered. Should the US government be able to assist us in uncovering corruption of the same nature here on home soil, should it not be South Africans that should benefit from any fines and/or penalties as they were the ones who were the victims of this corruption?” Holomisa stated in his letter.

Investigation ongoing

Mkhwebane on Wednesday confirmed her office received the UDM leader’s letter saying they were considering it.

She said there was already an investigation ongoing into Glencore’s dealings with Eskom, after a complaint lodged in 2020 by Koko.

“We’ve received that letter and I’ve also requested the registration team to include that [letter]. There is a current investigation which was lodged by Mr Matshela Koko in 2020 rating to the very same monies which were paid to Glencore.

“So that investigation is ongoing and it falls within the good governance and integrity investigation and we will see how we look into that matter of Mr Holomisa,” Mkhwebane said in an interview with Newzroom Afrika.

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