LONDON (dpa-AFX) - Glencore (GLCNF.PK, GLNCY.PK, GLEN.L) pleaded guilty and agreed to pay over $1.1 billion to resolve the government's investigations into violations of the Foreign Corrupt Practices Act (FCPA) and a commodity price manipulation scheme.
The guilty pleas are part of coordinated resolutions with criminal and civil authorities in the United States, the United Kingdom, and Brazil. Meanwhile, Swiss and Dutch investigations remain ongoing.
As per the terms of the US resolutions, Glencore will pay penalties of $700.71 million to resolve bribery investigations and $485.64 million to resolve market manipulation investigations by the Department of Justice and the Commodity Futures Trading Commission. Of the amount, up to $165.93 million will be credited against other, parallel matters, including in the UK, so that the net amount payable to the US authorities is expected to be $1.02 billion. Glencore has further agreed to pay $39.60 million under a resolution signed with the Brazilian Federal Prosecutor's Office in connection with its bribery investigation into the Group.
Glencore Energy UK Limited has also indicated that it will plead guilty to charges brought by the UK Serious Fraud Office in respect of its bribery investigation. The penalty to be paid will be determined following a sentencing hearing currently scheduled for 21 June 2022.
Glencore noted that it does not currently anticipate that the amount to be paid in respect of the UK resolution will result in the aggregate amount being paid for all of the above resolutions differing materially from the $1.50 billion provision recorded in the company's 2021 financial statements.
The plea agreements entered into by Glencore International AG and Glencore Ltd. with the U.S. Department of Justice each provide for the appointment of an independent compliance monitor for a period of three years to assess and monitor the company's compliance with the agreements and evaluate the effectiveness of its compliance programme and internal controls.
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