Glencore flew bribe money throughout Africa in non-public jets, court docket advised

A intermediary paid by Glencore flew money in non-public jets throughout Africa to bribe officers, a London court docket was advised on Wednesday.

A UK subsidiary of the commodity dealer and mining group might be sentenced at Southwark Crown Court docket this week after pleading responsible in June to seven counts of bribery spanning international locations from Nigeria to Cameroon following a Severe Fraud Workplace probe.

Glencore has put aside $1.5bn to settle a collection of worldwide probes, together with about $1.1bn for US authorities. Its UK superb might be decided on Thursday.

The SFO’s investigation centered on Glencore’s London workplace and its west Africa desk, which sourced oil throughout the continent.

On Wednesday, a barrister representing the SFO mentioned Glencore had paid a Nigerian intermediary greater than €4mn disguised as service charges.

Cash was transported, typically by non-public jet, from Nigeria to Cameroon to a Glencore oil dealer who used it to pay bribes, in response to the SFO, with $13.7mn paid to officers in Cameroon’s nationwide oil and gasoline firm and the nation’s nationwide refinery within the three years to March 1 2015.

The court docket heard Glencore had used a Swiss “money desk” to dispense cash for use for bribery. The dealer on the west Africa desk withdrew €6.3mn in money from this desk by way of a collection of transactions listed as “workplace bills”.

Glencore’s non-executive chair Kalidas Madhavpeddi, who changed Tony Hayward in a management overhaul final 12 months, and normal counsel Shaun Teichner each attended court docket on Wednesday.

Clare Montgomery KC, representing Glencore, mentioned the corporate’s conduct was “inexcusable” and “had no place in Glencore”, however that “these practices don’t exist in any kind in any of the Glencore corporations” immediately.

The SFO in Might charged Glencore Power UK with profit-driven corruption in reference to its oil operations in Cameroon, Equatorial Guinea, Ivory Coast, Nigeria and South Sudan.

The anti-graft company’s probe revealed the corporate had paid greater than $28mn to brokers and intermediaries to safe preferential entry to grease, elevated cargoes, precious grades of oil and preferable supply dates.

On Wednesday, the company set out a system by which Glencore merchants disguised funds to present the looks that they had been for “legit providers”.

The court docket heard that the SFO had acquired proof from Anthony Stimler, a UK citizen who labored on the corporate’s west Africa desk till 2019 and pleaded responsible to expenses within the US final 12 months. He confirmed that funds to the Nigerian agent had been a “sham” to disguise their true goal.

Glencore is the primary firm to be the topic of a felony prosecution by the UK Severe Fraud Workplace for paying bribes and has pleaded responsible to 5 such offences.

Glencore has pleaded responsible to 2 separate US felony circumstances and agreed to pay about $1.1bn in felony fines and forfeiture. Prosecutors within the US and UK agreed to give attention to totally different time durations of offending so as to keep away from double jeopardy.