By Stephany Torres (12 August 2024)
Swiss prosecutors have concluded a four-year investigation into the mining giant Glencore, resulting in a CHF 2 million (USD 2.3 million) fine and a USD 150 million compensation bill for the company. Notably, this Swiss enforcement action stems from a bribery scandal in the Democratic Republic of Congo (DRC), dating back to 2011, in which Glencore failed to prevent its business partner from bribing public Congolese officials. This penalty is part of broader legal troubles for Glencore, which has had to pay a USD 1.1 billion settlement with the U.S. Department of Justice and other fines from the UK and Brazil, among others.
The Office of the Attorney General of Switzerland and Dutch authorities have now closed their investigations related to Glencore’s activities in the DRC from 2007 to 2017. Despite the penalties, Glencore does not admit to the findings but has agreed that it will not appeal the decision. Glencore’s chairman emphasised the company’s commitment to ethical practices and compliance with the law, highlighting efforts to improve their ethics and compliance programs globally.
Says Andreas Stargard, an attorney with Primerio International, “what is perhaps most of note here is that Glencore was held liable for acts of others — this means, companies doing business in Africa must be particularly vigilant not to hire third-party agents or engage contract partners that present liabilities. The Attorney General in the Glencore case expressly stated in its summary penalty order no proprietary Glencore personnel had any knowledge of the bribery scheme itself, nor did Glencore benefit financially from the conduct of its business partner.”
Stargard also notes that the company is already under an obligation to have U.S. DOJ monitors actively observing its compliance efforts, in addition to having reached a deal two years ago with the Democratic Republic of the Congo’s government, resulting in another $180 million fine over essentially similar bribery allegations.
