Glencore pays up to $1.5bn to resolve corruption claims

Glencore pays up to $1.5bn to resolve corruption claims
Glencore company headquarters in Zug, Switzerland. Glencore is one of the largest commodities trading and mining firms in the world.
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Updated 25 May 2022

Glencore pays up to $1.5bn to resolve corruption claims

Glencore pays up to $1.5bn to resolve corruption claims
  • The US Department of Justice said its case against the company related to “a decade-long scheme by Glencore and its subsidiaries to make and conceal corrupt payments and bribes”

Commodities firm Glencore says it has reached deals with authorities in the United States, Britain and Brazil to resolve corruption allegations in return for penalties totaling up to $1.5 billion.

The Anglo-Swiss company said late Tuesday that it will pay $700 million to resolve a US bribery probe and a further $486 million in connection with allegations of market manipulation.

Glencore said that about $166 million in fines agreed with the US authorities will be credited to a parallel investigation by the UK Serious Fraud Office, where it has indicated that it will plead guilty to bribery at a hearing next month.

Separately, the company is paying $40 million to resolve a bribery probe in Brazil.

The US Department of Justice said its case against the company related to “a decade-long scheme by Glencore and its subsidiaries to make and conceal corrupt payments and bribes” to foreign officials in Africa and Latin America.

“The scope of this criminal bribery scheme is staggering,” US Attorney Damian Williams for the Southern District of New York was quoted as saying. “Glencore paid bribes to secure oil contracts. Glencore paid bribes to avoid government audits. Glencore bribed judges to make lawsuits disappear.”

“At bottom, Glencore paid bribes to make money — hundreds of millions of dollars,” Williams said. “And it did so with the approval, and even encouragement, of its top executives.

“Glencore today is not the company it was when the unacceptable practices behind this misconduct occurred,” chairman Kalidas Madhavpeddi said in a statement, adding that Glencore was committed to “act ethically and responsibly across all aspects of its business.”

Glencore said that it “does not currently anticipate” the total payments to differ materially from the $1.5 billion it has set aside so far.

The company remains subject of investigations in Switzerland and the Netherlands.


Nearly 60% of Saudi, UAE businesses lack ESG framework, survey shows

Nearly 60% of Saudi, UAE businesses lack ESG framework, survey shows
Updated 16 sec ago

Nearly 60% of Saudi, UAE businesses lack ESG framework, survey shows

Nearly 60% of Saudi, UAE businesses lack ESG framework, survey shows

RIYADH: Nearly 60 percent of businesses in Saudi Arabia and the UAE do not have an environmental, social and governance framework, a survey by ASDA’A BCW’s unit showed. 

Conducted by PSB Middle East, the survey also revealed that around half of those who have an ESG framework, are not sure their employees fully understand it. 

The survey marked the launch of OnePoint5, its new ESG advisory dedicated to the Middle East and North Africa region.

Out of the 200 respondents interviewed, 41 percent said their business already had an ESG framework in place, while 33 percent said they were developing one, while 26 percent admitted their company had no ESG policy. 

Around 52 percent of the respondents said their company had introduced an ESG framework and they did not fully understand it, which shows the need for raising awareness of the benefits of ESG standards. 

The research indicated that the Middle East’s business community had work to do to meet the high expectations of their governments on sustainability, Sunil John, president MENA of BCW, said. 

 


Saudi Arabia’s Retal signs $91m deal with PIF-backed Roshn to purchase plots in SEDRA

Saudi Arabia’s Retal signs $91m deal with PIF-backed Roshn to purchase plots in SEDRA
Updated 30 June 2022

Saudi Arabia’s Retal signs $91m deal with PIF-backed Roshn to purchase plots in SEDRA

Saudi Arabia’s Retal signs $91m deal with PIF-backed Roshn to purchase plots in SEDRA

RIYADH: Saudi Arabia’s Retal Urban Development has signed a SR339 million ($90.5 million) deal with the Public Investment Fund-backed Roshn Real Estate to buy 372 plots within its integrated community SEDRA in Riyadh.

Saudi-listed Roshn said it plans to develop the land according to its guidelines for SEDRA, according to MEED. 

Located in the north of Riyadh, the project was launched last August by Roshn, with a plan to include 30,000 homes across eight phases. 

The agreement is expected to directly impact Retal’s financials between 2022 and 2024.


Saudi authority approves Tibbiyah’s 51% acquisition of UAE health company 

Saudi authority approves Tibbiyah’s 51% acquisition of UAE health company 
Updated 30 June 2022

Saudi authority approves Tibbiyah’s 51% acquisition of UAE health company 

Saudi authority approves Tibbiyah’s 51% acquisition of UAE health company 

RIYADH: Saudi-based Arabian International Healthcare Holding Co., known as Tibbiyah, has got the General Authority for Competition’s approval to acquire a 51 percent stake in UAE’s Innovative Healthcare Co.

Operating as a holding company, Tibbiyah, through its subsidiaries, offers medical systems, healthcare equipment, and medical supplies in the Kingdom. 

The authority also approved Growth Avenue Investment Co.’s acquisition of a 40 percent stake in Saudi Medical System.

Since the beginning of 2021, the authority has approved 101 acquisitions. 


Egypt In-Focus: Egypt to buy 815,000 tons of wheat; power interconnection project with KSA underway

Egypt In-Focus: Egypt to buy 815,000 tons of wheat; power interconnection project with KSA underway
Updated 30 June 2022

Egypt In-Focus: Egypt to buy 815,000 tons of wheat; power interconnection project with KSA underway

Egypt In-Focus: Egypt to buy 815,000 tons of wheat; power interconnection project with KSA underway

CAIRO: Egypt has contracted to buy the largest quantity of wheat in a tender in at least a decade, as it takes advantage of the recent price drop. Additionally, the World Bank has agreed to provide the North African country $500 million in development funds to boost food security.
Egypt has contracted to buy the largest quantity of wheat in a tender in at least a decade, as it takes advantage of the recent price drop, Bloomberg reported. 

The country’s General Authority for Supply Commodities bought 815,000 tons to bolster stockpiles as Russia’s invasion of Ukraine disrupted global supplies.

According to data compiled by Bloomberg, the order is considered the largest single purchase since at least 2012. 

Food security

The World Bank has agreed to provide Egypt with $500 million in development funds to boost food security.

Egypt-Saudi electrical interconnection

The minister of electricity and renewable energy has said work is currently in progress on the electrical interconnection project with Saudi Arabia to exchange 3,000 MW at a cost of $1.8 billion. 

Mohamed Shaker told Daily News Egypt that the project is set to be operational by 2026.


Saudi low-cost airline flyadeal launches 5 new summer destinations for 2022

Saudi low-cost airline flyadeal launches 5 new summer destinations for 2022
Updated 30 June 2022

Saudi low-cost airline flyadeal launches 5 new summer destinations for 2022

Saudi low-cost airline flyadeal launches 5 new summer destinations for 2022

RIYADH: Saudi Arabia’s low-cost airline flyadeal has launched new summer destinations for 2022.

The news destinations include Amman in Jordan, Tbilisi in Georgia, Baku in Azerbaijan, Sharm El Sheikh in Egypt and Khartoum in Sudan. 

The budget airline’s network currently includes 24 domestic and international routes. 

The company operates a new fleet of 24 Airbus 320 aircraft with an age of only 2.1 years, CEO Con Korfiatis said. 

He added the airline approached 15 million passengers in a period of less than 5 years, which is an unprecedented number for an emerging airline.