The Serious Fraud Office (SFO) investigations have exposed huge profit-driven bribery and corruption in the operations of Glencore Energy (UK), a member of the Switzerland-headquartered commodities and mining multinational, Glencore Plc. The exposure led to seven counts of bribery in connection with its oil operations.
The SFO investigations unearthed how profit-driven bribery and corruption across the company’s oil operations in five African countries, including Cameroon, Equatorial Guinea, Ivory Coast, Nigeria, and South Sudan.
Records from the investigating countries show that Glencore’s corrupt actions are estimated to be more than USD100 million in bribes to officials in Brazil, Cameroon, Cote d'Ivoire, Equatorial Guinea, Nigeria, South Sudan, and Venezuela, between 2007 and 2018.
During a hearing at Westminster Magistrates’ court, the United States Attorney, Damian Williams, says the scope of this criminal bribery scheme is "staggering." He went on, "Glencore paid bribes to secure oil contracts; paid bribes to avoid government audits; bribed judges to make lawsuits disappear; and at the bottom, paid bribes to make money—hundreds of millions of dollars. It did so with the approval, and even encouragement, of its top executive, "he outlined.
In June 2019, the SFO opened an investigation, codenamed "Operation Azoth", into the activities and operations of Glencore for corruption. According to the case, Glencore agents and employees paid bribes worth millions of dollars in exchange for preferential access to oil with the approval of the company.
The SFO parallel investigation is done by the US, in collaboration with the Dutch and Swiss prosecutors. Operation Azoth is an investigation into Glencore UK Limited, a UK-based subsidiary of Glencore, and its wholly-owned subsidiary, Glencore Energy (UK) Ltd, concerning oil trading and related activities.
The SFO has charged Glencore with seven counts of bribery under the Bribery Act 2010, five substantive charges under Section 1, and two under the corporate failure to prevent bribery offense, Section 7.
However, Glencore is a member of the Norwegian-based Extractive Industries Transparency Initiative (EITI), and members are calling for the company’s suspension as an EITI-supporting company.
According to the investigating countries, Glencore’s corrupt actions included more than USD100 million in bribes to officials in Brazil, Cameroon, Côte d'Ivoire, Equatorial Guinea, Nigeria, South Sudan, and Venezuela between 2007 and 2018.
The SFO’s prosecution and the court’s sentencing of Glencore are expected to come at the Southwark Crown Court on Tuesday, June 21, 2022.
The Director of the Serious Fraud Office, Lisa Osofsky, said, "This significant investigation, which the Serious Fraud Office has brought to court in less than three years, is the result of our expertise, our tenacity, and the strength of our partnership with the US, and other jurisdictions."
Lisa continues, "We won’t stop fighting serious fraud, bribery, and corruption, and we look forward to the next steps in this major prosecution."
Glenore is a member of the Norwegian-based Extractive Industries Transparency Initiative (EITI). Based on its years of corrupt actions, Glencore should be suspended as an EITI-supporting company.
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