As the most significant natural resources entity, Glencore has agreed to pay $180 million for its corruption claims in the Democratic Republic of Congo.
Glencore said this payment of R3 billion is all about admitting its present and future claims of corruption in the DRC for years between 2007 and 2008.
According to the mining giant, this includes activities in certain group businesses that have been the subject of various probes by, amongst others, the United States Department of Justice (DOJ) and the DRC’s National Financial Intelligence Unit and Ministry of Justice.
Glencore also announced that 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 as Engineering News reports.
Glencore chairman Kalidas Madhavpeddi said in a statement that the company is a significant investor in the DRC.
“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,” He said.
“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.”
In its announcement of coordinated resolutions with the US, United Kingdom, and Brazilian authorities, starting before the company knew of the DOJ’s investigations, Glencore 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.
In addition, the mining company made an announcement that it would fork out £281m (about R59bn) following the admission of charges relating to bribery offences in the African continent.