Glencore ordered to pay $150M by Swiss authorities in criminal investigation

The Office of the Attorney General of Switzerland said, “After four years of investigation, the Office of the Attorney General of Switzerland has closed its criminal investigation against Glencore International. It specifically imposes a summary penalty order on the grounds of corporate responsibility for Glencore’s failure to take all necessary and reasonable organizational measures with regard to the bribery of foreign public officials by a business partner in connection with the latter’s acquisition of minority stakes in two mining companies in the Democratic Republic of Congo in 2011. The OAG ordered Glencore to pay a fine of CHF 2 million and a compensation claim amounting to $150 million. Regarding a part of the other facts investigated by the OAG and relating to Glencore’s business activities in the DRC between 2007 and 2017, the OAG issued an abandonment order. In the summary penalty order of 5 August 2024, Glencore is held criminally liable of corporate liability for failing to take all necessary reasonable and organizational measures to prevent the bribery of a Congolese public official by its business partner. The bribery by the business partner took place in 2011 in connection with his acquisition of minority stakes from the state-owned mining company in the DRC for less than their value. The mining shares were taken over by the business partner, who also safeguarded the interests shared with Glencore, and Glencore failed to ensure adequate management of the resulting risks. The OAG ordered Glencore to pay a fine of CHF 2 million and a compensation claim amounting to $150 million. The fact that Glencore has cooperated with the prosecuting authorities since the opening of the criminal investigation in June 2020 has been taken into account in the reduction of the penalty.”