U.S. probing Glencore’s operations in Nigeria, two others

The United States Commodity Futures Trading Commission is investigating a global oil trading firm, Glencore Plc, for alleged ‘corrupt practices’.

The Swiss-based company’s activities in Nigeria, the Democratic Republic of Congo, and Venezuela are being looked into under the ongoing investigation.

Reuters, on Thursday, quoted Glencore as saying that the CFTC was investigating whether the company and its units might have violated certain regulations through “corrupt practices.”

Reuters said, “Glencore Plc said here on Thursday that the US Commodity Futures Trading Commission is investigating whether the miner and its units may have violated certain regulations through ‘corrupt practices.’”

The company said the investigations were at an early stage and had a similar scope in terms of subject matter as a current investigation by the US Department of Justice.

Glencore had last July said it received a subpoena from the DoJ requesting documents and records on compliance with the US Foreign Corrupt Practices Act and money-laundering statutes.

“The documents related to the company’s business in the Democratic Republic of Congo, Venezuela and Nigeria,” Reuters said.

Glencore was said to have given the assurance to cooperate with the CFTC, but declined to comment beyond the statement.

The company added that its response would be managed by its investigations committee, which was set up following the DoJ subpoena.

Glencore was among the companies that won the two-year crude lifting contracts given to traders by the Nigerian National Petroleum Corporation in May 2018.

The NNPC issued in 2018 crude export contracts expected to last two years instead of the usual one year.

A partial preliminary list, according to Reuters, had shown 30 companies, including the world’s largest energy traders, Vitol, Trafigura and Glencore.

The Financial Times reported last month that the US regulatory investigation into Glencore’s activities in Nigeria and Venezuela was focused on agreements to secure oil supplies for its trading arm, according to the company’s annual report.

In the annual report, Glencore’s auditor, Deloitte, was said to have noted that the company’s activities in Nigeria within this period were “limited primarily to oil offtake agreements.”


Source: Punch



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