Glencore Energy (UK) Limited has been given a £280 million fine for bribery and failure to prevent bribery. In sentencing, the judge described the company’s offending as “significant”.

Has your company been accused of fraud and financial crimes? Contact us now at Ashmans Solicitors. We are highly experienced financial crime solicitors and are well-versed in defending corporate criminal liability.

The facts of the case

The case centred on the dealings of Glencore’s West Africa oil trading desk in London. The Serious Fraud Office (SFO) claimed that the company’s agents and employees paid bribes worth over $25 million for preferential access to oil – and that this behaviour was approved by Glencore. This resulted in corruption taking place across five separate countries in West Africa.

Glencore was charged with seven counts under the Bribery Act 2010, including five counts of bribery and two counts of failure of a commercial organisation to prevent bribery. Glencore pleaded guilty to all seven counts.

A significant fine

Companies cannot receive jail sentences, so the penalty consisted of a financial fine. The total penalty amounted to some £280 million, and included:

  • A confiscation order of £93,479,338.95
  • Fines on each of the seven counts totalling £182,935,392
  • Payment of the SFOs prosecution costs of £4,550,362

In sentencing, the Judge said: “Bribery is a highly corrosive offence. It quite literally corrupts people and companies, and spreads like a disease. Honest businesses miss out on legitimate opportunities, and honest employees and officials suffer, as a result of it.

The proper and lawful conduct of business is seriously impacted and markets can be affected on a significant scale. Depending upon the type of bribery, national oil companies run the risk of losing significant revenue, although here losses to particular government entities are difficult to quantify.

Any bribes are serious, but when those bribes are measured in the millions of US dollars or Euros – and in count 4 here alone, in excess of 10 million Euros – then the figures speak for themselves. This is significant offending.”

A stark warning

Mr Justice Fraser also offered a warning to other companies who might be considering similar conduct, remarking: “Other companies tempted to engage in similar corruption should be aware that similar sanctions lie ahead.”

Contact us

Has your company been accused of fraud and financial crimes? Contact us now at Ashmans Solicitors. We are highly experienced fraud and financial crime solicitors and are well-versed in defending corporate criminal liability.

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