Glencore subpoenaed by U.S. over compliance with corruption laws – by Scott Patterson (Wall Street Journal/Toronto Star – July 4, 2018)

LONDON—Glencore PLC said it received a subpoena from U.S. authorities related to compliance with American corruption and money-laundering laws at its operations in Congo, Nigeria and Venezuela — a move that significantly ratchets up government scrutiny of the mining and trading giant.

The early Tuesday disclosure rattled investors. Glencore shares fell more than 12% in early London trading. Glencore said the U.S. Justice Department issued a subpoena demanding it hand over documents and other records related to compliance with the U.S. Foreign Corrupt Practices Act and U.S. money laundering statutes.

FCPA is an antibribery law that forbids the bribing of foreign officials to win, or keep, business. Glencore said it was reviewing the request and would provide further details “as appropriate.” A spokesman declined to comment further.

The company said the subpoena was dated July 2 and relates to its operations in the three countries from 2007 to the present.

Glencore’s mining operations in the Democratic Republic of Congo have been the subject of scrutiny by foreign governments and corruption watchdogs. But its oil operations in Venezuela and Nigeria haven’t surfaced before as a subject of interest by government officials.

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