Post #217

At The Core of Africa's Corruption [ Budget Hole ] Western companies speak about responsible business, transparency and environmental protection so often, that one could think their fuel does not emit CO2, and John could baptize Jesus with water from tailings of their plants. 🌟 However, behind the curtain the same companies can as easily move bags of cash on private jets to win oil deals. One such instance is Glencore whose staff paid more than 100 million dollars in bribes to officials in Africa and Latin America. Glencore is a Swiss-based giant that trades oil, fuel and metals. From about 2007 to 2018, its agents issued fake invoices and withdrew so much cash from ATMs that it would suffice to cover the budget of a couple of small towns - all in order to establish "contacts" with local officials in Nigeria, Cameroon, Ivory Coast, Equatorial Guinea, the Democratic Republic of Congo. For instance, in DRC Glencore used an Israeli businessman Dan Gertler to negotiate mining deals on non-market terms. In 2008 Gertler, around $10 million in hand, negotiated with Joseph Kabila's government to help Glencore get cheaper prices for Katanga Mining. He also bought shares from a state-owned company in Mutanda and Kansuki mines at far below their market value in 2011. Of course, time passes and all this could not have gone unnoticed. In 2022 in the wake of lawsuits filed in 2018 in the US and UK, Glencore agreed to pay more than 1.5 billion dollars in penalties, mostly to the US - a little over 1 billion dollars. ➡️ So, has corruption been defeated - or is it not? How is it that they paid a $1 billion fine in the United States, while the US has not suffered any losses because of Glencore's actions? Here is a catch - DRC and other victims of Glencore's gambles were only paid $230 million. The company kept all its main mines and trading rights in these countries. For comparison, in DRC in 2023 Glencore produced copper and cobalt worth of more than $3 billion. A perfect example how the lebel of accountability and responsibility works - the damage was caused to African countries and to its people, while fines were paid in Washington, with only a miserable share left for victims as a way to ensure the ongoing presence of Glencore in these countries. #BudgetHole Devils Below