Glencore Congo's Troubled Past and Ongoing Controversies

Glencore Congo has a long history of controversy in the Democratic Republic of Congo (DRC). The company has been involved in several high-profile disputes over the years, including a lawsuit filed by the DRC government in 2017 that accused Glencore of evading taxes on its cobalt exports.

Glencore has also faced criticism for its handling of artisanal mining, which is a significant source of cobalt in the DRC. Artisanal mining is often associated with child labor and other human rights abuses. In 2019, Glencore announced that it would no longer buy cobalt from artisanal mines, but the company has faced criticism for not doing enough to address the issue.

The DRC's artisanal mining sector is a complex and often opaque industry, with many small-scale mines operating outside of the law. Glencore has faced accusations that it has profited from this system, while doing little to address the associated human rights abuses. In 2018, the company was accused of buying cobalt from mines that used forced labor.

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The DOJ investigation into Glencore's activities in Africa and beyond has been a long and complex one. In July 2018, Glencore received a subpoena from the U.S. Department of Justice to produce documents and other records related to compliance with the Foreign Corrupt Practices Act and U.S. money laundering statutes.

The requested documents relate to Glencore's business in Nigeria, the Democratic Republic of Congo, and Venezuela from 2007 to present. This investigation was not the only one, as Britain's Serious Fraud Office was also reported to be considering an investigation into Glencore's dealings with Dan Gertler and DRC President Joseph Kabila in May 2018.

Glencore ultimately pleaded guilty to multiple counts of bribery and agreed to pay penalties of about $1.5 billion in May 2022. This marked a significant development in the DOJ's investigation, which had been ongoing for several years.

The investigation found that Glencore made and concealed corrupt payments and bribes through intermediaries for the benefit of foreign officials across multiple countries between 2007 and 2018. Glencore's corrupt practices spanned over a decade and eight countries, including Nigeria, Cameroon, Ivory Coast, Equatorial Guinea, Brazil, Venezuela, and the Democratic Republic of Congo.

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In the US, Glencore admitted to manipulating oil prices as part of its corrupt practices. The company's executives acknowledged the "unacceptable practices" and "misconduct identified in these investigations", but argued that the company had been making efforts to improve its ethics and compliance program since before it knew of the US DOJ investigation.

Glencore Congo has been plagued by numerous scandals and controversies over the years.

Since 2010, there have been over 70 human rights abuse accusations against Glencore documented by Business & Human Rights Resource Centre.

Glencore's partnership with Dan Gertler, a businessman with a dodgy reputation, has been a major source of controversy.

Gertler's close ties with President Kabila, who allegedly received weapons in exchange for a monopoly on the sale of DRC diamonds in 2001, have been extensively documented.

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In 2005, proceeds from an oil sale to Glencore were seized as fraudulent gains as part of an investigation into corruption in the Democratic Republic of Congo.

Dan Gertler, a businessman with a dodgy reputation, partnered with Glencore in 2009 to extract copper and cobalt in the Congo.

Glencore claimed to have conducted extensive due diligence before joining forces with Gertler, but his bad reputation was already infamous back in 2007.

Gertler's close ties with President Kabila and second-in-command Augustin Katumba Mwanke had already been pinpointed by the UN and the Congolese parliament.

In 2001, an expert report prepared for the Security Council referred to Gertler's transactions in the diamond industry as a "nightmare" for the DRC's government.

The close ties between Glencore and Gertler remained until February 2017, when Glencore eventually decided to distance itself from him.

Over 70 human rights abuse accusations against Glencore were documented by Business & Human Rights Resource Centre since 2010.

Glencore was accused of engaging in a large-scale, globally coordinated lobbying campaign to promote coal use.

The campaign, which started in 2017 and ran until 2019, aimed to undermine environmental activists, influence politicians, and spread pro-coal messaging on social media.

The Guardian Australia reported that Glencore was aided by consulting firm CT Group in this campaign.

This campaign was shut down in February 2019, according to Glencore.

Glencore Congo has been embroiled in a $894 million royalty row with local tax authorities in the Democratic Republic of Congo.

The company's Kamoto Copper Co. unit owes the Congolese state a significant amount, which has led to the freezing of local bank accounts and the sealing off of a warehouse where the company was storing metal.

Glencore has also been involved in a controversy surrounding a $45 million loan to Israeli billionaire Dan Gertler, which was made in exchange for his help with officials in the Democratic Republic of Congo.

The loan was part of a joint venture with state-owned Gécamines at the Katanga copper mine, and Glencore has denied any wrongdoing in the matter.

In 2024, the Chilean tax authorities initiated the process of recouping more than $1.5 billion in unpaid taxes from Glencore, highlighting the company's ongoing financial and legal issues.

Glencore's financial woes are mounting, with a $894 million royalty row in the Democratic Republic of Congo.

The company's Kamoto Copper Co. unit owes the Congolese state a significant amount, according to local tax authorities.

Glencore's past dealings with Israeli billionaire Dan Gertler have raised eyebrows, with the company loaning him $45 million in exchange for his help with officials in negotiations over a joint venture.

This deal has sparked controversy, with some questioning the company's motives and potential wrongdoing.

The Paradise Papers revealed that Glencore's loan to Gertler was conditional on agreement being reached within three months, which raises questions about the company's financial risks.

Glencore's reputation has been further tarnished by its history with founder Marc Rich, who was indicted for tax evasion and making controversial oil deals.

In 2024, Chilean tax authorities initiated a process to recoup over $1.5 billion in unpaid taxes from Glencore.

The company's Australian branch has also been scrutinized for its use of complex financial instruments, with the Australian Taxation Office suspecting that cross-currency interest rate swaps were used to avoid paying taxes.

In 2019, a lawsuit was filed against Apple, Microsoft, Dell, and Tesla by International Rights Advocates.

The lawsuit claimed that these tech giants benefited from and aided child labor in mining companies' cobalt operations.

The mining companies in question sold cobalt to Umicore, which then sold the cobalt to be used in lithium batteries in the tech giants' products.

Glencore, the owner of the mines, released a statement denying any involvement in child labor and stating that they do not tolerate such practices.

The case was dismissed, and International Rights Advocates appealed in 2022.

Glencore's global operations have faced intense scrutiny over the years. The company has been involved in numerous investigations and lawsuits across the world.

In the Democratic Republic of Congo, Glencore's dealings with Dan Gertler have been particularly contentious. The Paradise Papers revealed that Glencore issued a mandate to Gertler to negotiate with Congolese authorities, which led to a substantial reduction in the signing bonus for Katanga Mining.

Glencore has admitted to bribing officials in eight countries to obtain oil trading deals. The company agreed to pay over a billion US dollars in fines in the US alone.

Here's a breakdown of the investigations and lawsuits Glencore has faced worldwide:

These investigations and lawsuits have led to significant fines and settlements for Glencore.

Glencore has faced numerous investigations and lawsuits worldwide. One of the most significant cases was in the US, where Glencore agreed to pay over a billion US dollars to settle bribery charges.

In May 2022, the authorities in Brazil, the US, and the UK announced that their investigation into Glencore for bribery of foreign public officials was complete. Glencore admitted to bribing officials from a total of eight countries to obtain lucrative oil trading deals.

The investigation in the US alone led to a massive fine, with Glencore agreeing to pay over a billion US dollars. The amount of the fine in the UK will be determined by the court in November 2022.

In addition to the US and UK investigations, Glencore also faced scrutiny in Brazil, where the company must pay the authorities 39'598'367 US dollars. This is in addition to the billion-dollar fine in the US.

Here's a breakdown of some of the key investigations and lawsuits faced by Glencore worldwide:

The Paradise Papers have unveiled new elements showing Gertler's key role in the multinational company's operations in the DRC.

These revelations show that Glencore, a Zug-based giant, issued a mandate to Gertler through Katanga Mining, a company Glencore was about to take over, to negotiate with the Congolese authorities between 2008 and 2009.

The success of these negotiations was conditional upon a USD 45 million loan that Glencore granted to Gertler.

Katanga secured a substantial reduction in the signing bonus, or 'pas de porte', which went from USD 585 to USD 140 million.

The Swiss firm allegedly paid Gécamines, the Congolese state company, a sum that was four times lower than that of most of its competitors.

This deal reportedly lost the DRC the equivalent of one-tenth of its budget, a country where nearly 80% of the Congolese population lives on less than two dollars a day.

Glencore and Gertler deny any wrongdoing.