May 27, 2022
Technical Staff
On May 24, 2022, the Anglo-Swiss organization announced that it will pay $700 million to settle a bribery investigation in the United States, as well as $486 million to settle claims of market manipulation. However, the company is still under investigation in Switzerland and the Netherlands. 1
The US Department of Justice examined a decade-long scheme by Glencore and its subsidiaries to make and conceal illicit payments and bribes to foreign officials in Africa and Latin America.
The U.S. Attorney Damian Williams for the Southern District of New York was quoted as saying the following: 2
“The scope of this criminal bribery scheme is staggering.”
“Glencore paid bribes to secure oil contracts. Glencore paid bribes to avoid government audits. Glencore bribed judges to make lawsuits disappear.”
“At bottom, Glencore paid bribes to make money – hundreds of millions of dollars,”
“And it did so with the approval, and even encouragement, of its top executives.”
The U.S. Attorney Damian Williams for the Southern District of New York
Powerful and Clandestine Organization
“Glencore — an incredibly powerful and clandestine commodities trading firm — has a global network spanning 40 countries. Reuters once called it “the biggest company you’ve never heard of.”” 3
In 2013, Glencore’s revenues were $240 billion.
Business Insider
It is highly likely that Glencore does not have a clean business history. Based on what the U.S. Attorney Damian Williams for the Southern District of New York asserted above, one cannot conclude that Glencore started bribing public officials and judges just over the past decade. In 2013, Glencore’s revenues were $240 billion. We do not think that the $1.5 billion alleged corruption settlement is deterrent enough to change Glencore’s culture or behavior.
Notes
1 Read more on Press, The Associated. “Glencore Pays up to $1.5B to Resolve Corruption Claims | The Seattle Times.” The Seattle Times. www.seattletimes.com, May 25, 2022. Access date May 27, 2022, https://www.seattletimes.com/business/glencore-pays-up-to-1-5b-to-resolve-corruption-claims/?utm_source=RSS&utm_medium=Referral&utm_campaign=RSS_business.
2 Ibid
3 Read more on Perlberg, Steven . “The Extremely Controversial History Of Commodities Giant Glencore.” Business Insider. www.businessinsider.com, July 1, 2013. Access date May 27, 2022, https://www.businessinsider.com/what-is-glencore-2013-7.
