Glencore creates board to respond to DOJ subpoena

by Holly Demaree-Saddler
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BAAR, SWITZERLAND – Glencore said it has established a committee to oversee the company’s response to a July 3 subpoena from the United States Department of Justice (DOJ) to produce documents and other records with respect to compliance with the Foreign Corrupt Practices Act and United States money laundering statutes. 

The committee includes: Tony Hayward, chairman; Leonhard Fischer, independent non-executive director; and Patrice Merrin independent non-executive director.

The requested documents relate to the Glencore Group's business in Nigeria, the Democratic Republic of Congo and Venezuela from 2007 to present.

"Glencore takes ethics and compliance seriously throughout the group,” said Howard. “The company will cooperate with the DOJ, while continuing to focus on our business and seeking to maximize the value we create for our diverse stakeholders in a responsible and transparent manner."

Glencore’s mining operations in the Democratic Republic of Congo have been the subject of scrutiny by foreign governments and corruption watchdogs. But its oil operations in Venezuela and Nigeria haven’t surfaced before as a subject of interest by government officials.

Glencore is one of the world’s largest diversified mining companies and is also among the world’s largest traders of commodities, including grain. It employs 146,000 people in more than 50 countries.

Following the announcement that it was being subpoenaed, Glenore shares fell by as much as 13% but rebounded to just 5% down.

The Swiss-based company has been in the news in recent months for its reported interest in purchasing U.S. agribusiness giant, Bunge Ltd.
 
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