Glencore takes R100bn knock on US subpoena
Justice department summons for documents under laundering and anticorruption laws
Commodities behemoth Glencore had more than R100bn of its market value wiped out on news that the US department of justice has subpoenaed it for documents under that country’s money laundering and anticorruption laws. Glencore CEO Ivan Glasenberg took a knock of about R6.6bn to his net worth on the day. After Qatar’s sovereign wealth fund, Glasenberg, a South African-born billionaire, holds the largest equity stake in the company, which has plans to expand in SA. The well-connected Glasenberg counts President Cyril Ramaphosa as one of his close associates, as Ramaphosa’s former investment vehicle, Shanduka, which has since merged with Pembani, is Glencore’s local empowerment partner on a number of mining projects. Late on Monday, under the Foreign Corrupt Practices Act and US money laundering statutes, Glencore was ordered to hand over documents relating to its business in Nigeria, the Democratic Republic of Congo (DRC) and Venezuela, dating back to 2007. Glencore mines cobalt and c...
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