Glencore reaches $180m settlement with DRC government
By Josh White
Date: Monday 05 Dec 2022
(Sharecast News) - Glencore has reached an agreement with the Democratic Republic of the Congo (DRC), it announced on Monday, covering all present and future claims arising from any alleged acts of corruption in the country between 2007 and 2018.
The FTSE 250 firm said that it included activities in certain group businesses that were investigated by the United States Department of Justice and the DRC's National Financial Intelligence Unit and Ministry of Justice, among others.
Under the agreement, Glencore International would pay the DRC $180m, and would continue to implement the ethics and compliance programme it committed to in its resolution with the US DOJ.
The agreement would be governed by Congolese law, and the only admissions made were those already acknowledged in Glencore's resolution with the US DOJ.
"Glencore is a long-standing investor in the DRC and is pleased to have reached this agreement to address the consequences of its past conduct," said chairman Kalidas Madhavpeddi.
"Glencore has actively promoted its ethics and compliance programme in the DRC in recent years and looks forward to continuing to work with the DRC authorities and other stakeholders to facilitate good governance and ethical business practices in the country."
As it said in its 24 May announcement of coordinated resolutions with US, UK and Brazil authorities, starting before the company knew of the DOJ's investigations, Glencore said it had invested "substantial resources" in developing the ethics and compliance programme.
The company also noted that it had a "refreshed" board and management team, including in its DRC operations.
At 1036 GMT, shares in Glencore were up 2.11% at 570.1p.
Reporting by Josh White for Sharecast.com.
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