Mining giant Glencore has been accused of misleading powerful investors about a damning bribery scandal, new court documents have revealed.
Finance giants including Abdrn, Citibank and the Kuwait Investment Authority have accused Glencore of making ‘untrue’ statements and withholding crucial information about corruption.
The shareholders are seeking damages over alllegations Glencore made false statements in brochures marketing the firm before its 2011 float and the mega-merger with Xstrata two years later.
Accusation: Finance giants including Abdrn, Citibank and the Kuwait Investment Authority have accused Glencore of withholding crucial information about corruption
It is claimed the prospectuses insisted ‘there had been no material breaches’ of the law within the Glencore group. But lawyers argue that this was not true because the company was engaged in multiple ‘corrupt business practices’.
This included a Glencore subsidiary facilitating the payment of millions of dollars in bribes to officials in five African countries. Prosecutors said Glencore’s employees and agents used private jets to transfer cash to pay the bribes.
A London court ordered Glencore to pay £281 million in fines last year following an investigation by the Serious Fraud Office.
In light of the misconduct revealed as part of the probe, more than a dozen large international investors have filed claims against Glencore. This could cost it billions in damages. Glencore’s current chairman said last year that the bribery was ‘inexcusable’ and stressed that the firm is ‘committed to operating transparently’.
The company was contacted for comment.
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