When the Paradise Papers bring the corrupt dealings of Glencore executives in the DRC to public attention, legal investigations begin across the world. The first of these to conclude, in 2018, is a probe by the Ontario Securities Commission – the regulator for the Toronto Stock Exchange in which Katanga is traded – which results in Katanga paying CAD$30 million to the commission and admitting all allegations.1 Board members are forced to step down, personally pay fines totalling CAD$6 million, and admit they undermined Katanga’s corporate governance. This includes the head of Glencore’s copper operations, Aristotelis Mistakidis.
Further investigations come soon after. In July 2018, the U.S Department of Justice launches a probe into corruption, which is followed by a bribery investigation by the UK Serious Fraud Office and a criminal investigation by the Swiss Attorney General.2,3,4
1 Ontario Securities Commission, “News Release: OSC Panel approves settlement with Katanga Mining Limited…”, December 18, 2018, https://www.osc.gov.on.ca/en/NewsEvents_nr_20181218_osc-panel-approves-settlement-with-katanga-mining-limited.htm
2 Neil Hume, David Sheppard, Henry Sanderson, “Glencore subpoenaed by US justice department,” Financial Times, July 3, 2018, https://www.ft.com/content/b18205f4-7e91-11e8-8e67-1e1a0846c475
3 UK SFO, “SFO confirms investigation into suspected bribery at Glencore group of companies”
December 5, 2019, https://www.sfo.gov.uk/2019/12/05/sfo-confirms-investigation-into-suspected-bribery-at-glencore-group-of-companies/
4 Public Eye, “Glencore’s murky deals in the DRC,” Public Eye, accessed January 8, 2021, https://www.publiceye.ch/en/topics/commodities-trading/glencore-in-drc