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- Prosecutors have detailed how Glencore used a cash desk in its Swiss headquarters and private jets in Africa to courier illicit payments across west Africa to pay state officials bribes.
- The JSE-listed company, founded by Marc Rich, admitted to seven counts of bribery across countries including Nigeria and Cameroon.
- A London judge will determine the final fine against Glencore on Thursday.
- For more financial news, go to the News24 Business front page.
Glencore officials delivered cash in private jets to officials across Africa, UK prosecutors said as they laid out a web of bribery and corruption orchestrated by the London oil trading desk.
The LSE and JSE-listed company, founded by Marc Rich, admitted to seven counts of bribery across countries including Nigeria and Cameroon, following a Serious Fraud Office (SFO) investigation. Prosecutors said the company paid more than $28 million in bribes to secure access to oil cargoes. It marks the first time a corporate has been convicted for paying bribes, according to the SFO.
A London judge will determine the final fine on Thursday.
"Corruption was condoned at a very senior level within the company generally" and the west African trading desk specifically, prosecutors said in a case summary made public Wednesday.
The sentencing will draw a line for the company in the UK over a series of long-running investigations, but leaves open the possibility of charges against former employees. An SFO prosecutor said on 21 October that as many as 11 ex-staff were under investigation for criminal wrongdoing.
In May, Glencore said it expected to pay around $1.5 billion (R27 billion) in total to resolve investigations in the US, UK and Brazil, of which $1.06 billion was payable to agencies in the US and Brazil. Glencore made a $410 million provision for the UK fine in the 2021 accounts of its UK subsidiary. It also faces ongoing investigations in Switzerland and the Netherlands.
READ | Glencore faces flood of UK litigation after bribery charges
The SFO said previously that its investigation showed the commodity trader paid for preferential access to oil, including increased cargoes, valuable grades of oil and preferable dates of delivery, between 2011 and 2016.
Prosecutors laid out a scheme that traders on the firm’s crude oil desk in London disguised payments "to give the illusion that these payments were for legitimate services."
Sham payments
The SFO detailed how the company used a cash desk in its Swiss headquarters and private jets in Africa to courier illicit payments across west Africa to pay state officials bribes.
Using sham payments to an agent the company paid bribes to officials in Nigeria, Cameroon, Ivory Coast, Equatorial Guinea and Republic of Congo.
The SFO said Glencore paid more than €4 million to the agent, identified as NG1, that were disguised as service fees. The agent then withdrew the money in Nigeria and flew it, often by private jet, to Cameroon where it was made available to a Glencore oil trader who used it to pay bribes.
The guilty plea is a much-needed win for the SFO, which has suffered a series of humiliating court reversals due to missteps by the agency’s leadership. A government-requested review said that some of the failures in another high-profile oil corruption case were caused by "cultural issues" within the SFO.
