Glencore to Pay over $300 Million for Bribery Scandal

The British arm of the mining and trading giant has been ordered to pay £276.4 million for seven counts of bribery related to oil deals in Africa. This decision was made by a London court last Thursday.

The decision includes a £182.9 million fine and the seizure of £93.5 million worth of assets belonging to Glencore Energy UK. The agreement was reached by Judge Peter Fraser at Southwark Crown Court, who says that the UK subsidiary was responsible for acts that “included the use of extremely large sums of money as bribes.” Fraser condemned the fact that the corruption had been going on for a long time.

Earlier this week, Glencore’s UK subsidiary pleaded guilty to the bribery scandal. According to the Serious Fraud Office (SFO), Glencore Energy UK paid more than $28 million to government officials in five different West African countries, including Cameroon and Nigeria, to gain access to those countries oil reserves. This required the use of private jets to transport large amounts of cash in order to bribe specific individuals.

Glencore has a history of questionable business practices. The parent company has set aside more than $1 billion in the current fiscal year to deal with allegations of market manipulation and bribery in the United States, Brazil, and the United Kingdom. Figures for the year’s first half were released in August and show that the company has spent more than $344 million to cover up its shadow dealings.

Clare Montgomery issued a statement on behalf of Glencore, saying, “the company regrets any harm caused by these violations and acknowledges the damage it has done to the national and public life of the African countries involved.”

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