Glencore shares fall on another corruption probe
The US Commodity Futures Trading Commission is investigating the company and its subsidiaries
Commodities giant Glencore faces yet another investigation, this time by the US Commodity Futures Trading Commission.
Glencore’s shares were 4.2% lower at R57.54 in early trade on Friday.
In a stock exchange news announcement on Friday morning, Glencore said it had been informed that the commission is investigating whether it and its subsidiaries “may have violated certain provisions of the Commodity Exchange Act and/or Commodity Futures Trading Commission regulations through corrupt practices in connection with commodities”.
Glencore said it understands that the commission’s investigations are at an early stage and have a similar scope in terms of subject matter as the current investigation by the US justice department.
In early July 2018, about R100bn was wiped off Glencore’s market value when it was announced that the department had subpoenaed it for documents.
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 and Venezuela, dating back to 2007.
In Friday’s announcement, Glencore said it will co-operate with the Commodity Futures Trading Commission.
“Glencore’s response will be managed by its investigations committee, which was set up in July 2018 to oversee Glencore’s response to the investigation by the department of justice,” the company said.