New corruption probe a blow for Glencore
News of another investigation — this time by the futures market commission — dents the share price, but an inquiry by the US department of justice remains the key concern
A new probe into Glencore for possible corrupt activities has dealt yet another blow to the mining company’s reputation, an analyst has said. Glencore announced on the JSE news service on Friday that it is the subject of yet another investigation, this time by the Commodity Futures Trading Commission (CFTC), which is investigating whether the global natural resources company and its subsidiaries “may have violated certain provisions of the Commodity Exchange Act and/or the Commodity Futures Trading Commission regulations through corrupt practices in connection with commodities”. The share price plummeted 4% to reach R57.60 a share on Friday, its biggest one-day fall since early January, before recovering to close at R57.75 a share. Glencore said in a statement the investigations are at an early stage and have a similar scope in terms of subject matter as the ongoing investigation by the US department of justice. Under the Foreign Corrupt Practices Act and US money laundering s...
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