Swiss Attorney General Closes Criminal Investigation Against Glencore
Glencore International has announced that the Office of the Attorney General of Switzerland (OAG) has concluded its criminal investigation against the company. The investigation was closed with a summary penalty order and an abandonment order.
The summary penalty order found GIAG criminally liable for not implementing all necessary and reasonable organizational measures to prevent the bribery of a Congolese public official by a business partner in 2011. This incident was related to the business partner's acquisition of minority stakes in two mining companies in the Democratic Republic of the Congo from a state-owned mining entity.
The OAG's summary penalty order stated that no Glencore employees were found to have knowledge of the bribery conducted by the business partner, nor did Glencore financially benefit from the partner's actions. As a result, GIAG has been fined CHF 2 million, and a compensation claim of USD 150 million has been imposed in respect of the estimated benefit obtained by the business partner.
Glencore has cooperated fully with the OAG's investigation and has taken significant steps to strengthen its compliance program since 2016. These efforts were considered mitigating factors in determining the fine amount. In parallel, the Dutch Prosecution Service concluded its investigation, dismissing the case following the resolution of the Swiss investigation.
Although Glencore does not accept the findings of the OAG, the company has agreed not to appeal the summary penalty order to resolve the matter.
Kalidas Madhavpeddi, Chairman of Glencore, stated: "Glencore is pleased to have resolved these investigations related to incidents that occurred over 13 years ago. This concludes the last of the previously disclosed government investigations into historical misconduct."
Madhavpeddi emphasized the company's commitment to operating in accordance with its Values, Code of Conduct, and legal obligations, highlighting significant investments in improving its Ethics and Compliance Programme over recent years. Glencore is dedicated to embedding ethics and compliance into every aspect of its operations globally.
Additionally, two independent compliance monitors mandated by the US Department of Justice began their work in mid-2023. Glencore has made considerable efforts to engage constructively with these monitors and has started implementing recommendations from their initial report. The company aims to continue collaborating with them over their three-year term to enhance its compliance framework further.
