Instant news 24/7

African Bribery Scandal: Glencore To Pay 281 Million Euros

2 min read
Glencore

Glencore

The largest penalties ever imposed on a company in the UK, the mining and commodities juggernaut Glencore has been forced to pay £281 million in fines, earnings that will be forfeited, and penalties for “continued criminality.”

A judge said at a hearing at Southwark Crown Court in London that the company’s UK subsidiary displayed a “very corrosive” bribery offense. The Guardian said that during the trial, the firm’s employees and agents caused harm valued at $128 million and £81 million at the time of the occurrence by giving bungs of $27 million to a small number of unknown officials in Nigeria, South Sudan, Ivory Coast, and other countries.

The fine has been reduced by one-third as a result of the company’s admission of guilt following the Serious Fraud Office of the UK’s claims of bribery. According to the SFO, the employees traveled to Africa in private jets with bribe money and phony identification. Kaliidas Madhavpeddi, the chairman of Glencore, attended the court proceeding. Later, in a statement, the chairman claimed that the business’s ethics and compliance had improved.

The highest fine ever levied against a firm in the history of the UK will cost the company $183 million. Along with paying £4.6 million in SFO fees, the company will also pay £93.5 million in confiscation compensation to the SFO. For the costs related to the bribery allegations, Glencore has already put aside $1.5 billion (£1.3 billion). In addition, the company will pay US $1.1 billion for violating bribery laws and manipulating commodity pricing.

The conviction for bribery will prevent companies from bidding for government contracts, according to Iskander Fernandez, a partner at the firm. This is in addition to the financial penalties and other reputational questions the firm faced.

Visit Us On: www.thespeednews.com

Leave a Reply