DRC / Corruption: Mining company fined $2.24 million and ordered to pay compensation of $150 million
On Monday, August 5, 2024, the Swiss Federal Prosecutor’s Office (MPC) issued a historic verdict by imposing a fine of 2 million Swiss francs (approximately 2.24 million USD) and a compensatory claim of 150 million USD on Glencore SA. This sanction concluded an extensive investigation into the Anglo-Swiss company’s activities in the Democratic Republic of Congo (DRC) between 2007 and 2017.
The mining giant was found guilty of failing to implement adequate measures to prevent the corruption of foreign public officials by its business partner, Israeli Dan Gertler. This case reignites the crucial debate on the transparency and integrity of mining contracts in Africa.
Between 2007 and 2017, Glencore, through Dan Gertler, paid approximately 100 million USD in bribes to African officials, primarily Congolese. These payments aimed to secure mining rights at a price four times lower than what was offered to other competitors at the time. This case not only highlights widespread corruption practices in the African mining sector but also the inefficiency of corruption prevention mechanisms within certain multinational companies.
The conviction of Glencore should serve as a wake-up call for anti-corruption authorities in Africa. It is imperative that African governments implement strict measures to monitor and regulate the signing of mining extraction contracts with foreign companies.
Authorities should establish independent oversight bodies tasked with controlling the procurement and mining contract processes. These bodies should have the power to investigate irregularities and sanction companies involved in corrupt practices. It is also crucial to adopt transparent and competitive procurement procedures. Governments should require full disclosure of the terms of mining contracts and the beneficial owners of the contracting companies.
Glencore’s conviction in Switzerland represents an important step in the fight against corruption in the mining sector. However, it is crucial that African authorities learn from this case and implement rigorous measures to prevent such practices in the future.
