Glencore, the largest natural resources company in the world, has reached an agreement with the Democratic Republic of Congo (DRC) to pay $180 million (R3 billion) for all present and future claims of corruption by the group in that country between 2007 and 2018.
According to the mining giant, this includes activities in certain group businesses that have been the subject of various investigations by, amongst others, the United States Department of Justice (DOJ) and the DRC’s National Financial Intelligence Unit and Ministry of Justice.
The group said under the agreement, Glencore International, on behalf of its Congolese-associated companies, would pay the DRC $180m and will continue to implement in the DRC the Ethics and Compliance Programme, which Glencore committed to continue to implement in its resolution with the DOJ.
"The agreement is governed by Congolese law and the only admissions made are in respect of the conduct already acknowledged in Glencore’s resolution with the DOJ," it said.
In a statement, Glencore chairman Kalidas Madhavpeddi said: “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.
"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.”
Glencore said as stated in its May 24 announcement of coordinated resolutions with the US, UK, and Brazilian authorities, starting before the company knew of the DOJ’s investigations, it had invested substantial resources towards developing a best-in-class Ethics and Compliance Programme.
"The company has a refreshed board and management team, including in its DRC operations, who are dedicated to fostering a culture of integrity, responsibility and transparency," it said.
Last month, Glencore announced that it would pay £281m (about R59bn) after it admitted to bribery offences in Africa.
BUSINESS REPORT