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Wednesday, 25 May 2022 14:26

Tesla, GM Supplier to Pay $1.1B Penalty for Bribery, Price Manipulation

Written by Joey Klender, Teslarati

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Tesla and General Motors material supplier Glencore and Glencore Ltd. pled guilty to several violations of the Foreign Corrupt Practices Act in relation to bribery and commodity and price manipulation.

Glencore agreed to pay more than $1.1 billion in fines to “resolve the government’s investigations” into illegal acts committed by the Switzerland-based companies.

 

Glencore will pay the penalties to authorities in the U.S., UK and Brazil, and said it cooperated with each country’s investigations.

 

Glencore said it will pay $700,706,965 to resolve bribery investigations and $485,638,885 to resolve market manipulation investigations by the U.S. Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC).

 

Additionally, “$165,930,959 will be credited against other, parallel matters, including in the UK, so that the net amount payable to the U.S. authorities is expected to be $1,020,414,891,” the company said. Glencore also agreed to a $39,598,367 penalty under a resolution signed with Brazil’s Federal Prosecutor’s Office in connection with its bribery investigation.

 

The DOJ said in its statement regarding Glencore’s violations it and its subsidiaries caused around $79.6 million in payments to be made to intermediary companies in West Africa. The purpose of these payments was to secure improper advantages to obtain and retain business with state-owned entities in the West African region.

 

“Glencore concealed the bribe payments by entering into sham consulting agreements, paying inflated invoices and using intermediary companies to make corrupt payments to foreign officials,” the DOJ said.

 

“The scope of this criminal bribery scheme is staggering,” U.S. Attorney Damian Williams said. “Glencore paid bribes to avoid government audits. Glencore bribed judges to make lawsuits disappear. At bottom, Glencore paid bribes to make money---hundreds of millions of dollars. And it did so with the approval, and even encouragement, of its top executives.”

 

Glencore admitted, in the Democratic Republic of the Congo, it offered to pay...


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